Improving global sentiment, domestic political stability and moderation in US dollar supporting ringgit - MOF

KUALA LUMPUR - Improving global sentiment and investor confidence in Malaysia, as well as a moderation in the US dollar, are among the major factors supporting the ringgit, said Deputy Finance Minister Steven Sim Chee Keong.

According to him, the ringgit had strengthened 3.2 per cent between Nov 4, 2022 and Feb 17, 2023 and this was also due to domestic political stability, resulting in improved investor confidence, apart from the expectation of a slower interest rate hike in the United States.

He was responding to queries from Lim Guan Eng (DAP-Bagan) in Parliament with regard to the impact on the ringgit, inflation and economy since the Unity Government was set up.

China’s reopening of its borders on Jan 8 also helped to support the ringgit, he added.

The deputy finance minister also pointed out that the country’s economy expanded 7 per cent in the fourth quarter and 8.7 per cent overall last year despite major external headwinds.

"At the same time, the country’s inflation rate moderated to 3.8 per cent in December 2022 compared to 4 per cent in November of 2022,” he noted. - BERNAMA