KUALA LUMPUR: The ringgit appreciated by 1.31 per cent against the US dollar on Monday, hitting its strongest level since mid-February 2023.
An economist said the ringgit continues to demonstrate resilience, performing favourably against the greenback amid shifting global economic sentiments.
In early trading, the US dollar/ringgit exchange rate broke through a key support level of RM4.4005, positioning the ringgit as one of the best-performing currencies in the Asian region.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said this strength follows a series of US economic data releases that have alleviated fears of a recession, suggesting that the US economy may be on track for a soft landing.
"With the ringgit piercing its support level, the next critical threshold is RM4.3000. This development highlights the ringgit's robustness in a volatile economic environment," Afzanizam told the Business Times.
According to Afzanizam, the upcoming Jackson Hole Symposium, where global central bankers will convene to discuss macroeconomic issues, is seen as a pivotal event to watch.
"Perhaps, there could be more hints about the upcoming Federal Open Market Committee's (FOMC) meeting in September as market participants have begun pencilling in for more rate cuts from September onwards," he added.