KUALA LUMPUR (Aug 6): The Malaysian ringgit snapped an 11-day rally against the US dollar on Tuesday, taking a breather after gaining nearly 6% during the run and outperforming other major Asian currencies.

The currency was last seen at 4.4653, backing away from its strongest level in 15 months. Most Asian currencies also weakened against the US. Leading the decline was the Japanese yen, which fell by 0.8%, pulling back from its six-month high. The Korean won slipped 0.2% while the Chinese renminbi was down 0.1%.

This week, volatility in the regional emerging Asean currencies is expected to be elevated, Maybank Investment Bank flagged. Given the conditions, the ringgit would continue to outperform supported by portfolio inflows, the house said.

Over the past month, the local note has appreciated by 5.1% against the US dollar. It has recovered 6.8% from a low of 4.7987 on February 20. Year to date (YTD), the ringgit has risen by 3.8% against the greenback.

In comparison, other regional currencies experienced declines: the Japanese yen was down 2.2%, the Taiwanese dollar was down 5.9%, the Indonesian rupiah was down 4.9%, the Philippine peso was down 4.3%, the Thai baht was down 3.1%, the Chinese renminbi was down 0.6%, and the Singapore dollar was down 0.4%.

The Hong Kong dollar was the only other Asian currency that have gained on a YTD basis against the US dollar, rising 0.29% so far this year.

Despite recent gains, the ringgit remains undervalued, said Singapore-based DBS Bank. The ringgit’s longstanding undervaluation have narrowed substantially to just 8% in August from 14% in May, according to DBS’s proprietary model.

Bank Negara Malaysia’s call to state-linked firms, corporations, and exporters to repatriate and convert overseas income has been “remarkably successful” in helping the ringgit recover from its multi-year low, the bank added.