KUALA LUMPUR (Jan 23): The ringgit rose on Friday and broke the 4.0000 mark against the US dollar for the first time in five years.

The local currency was trading at 3.9990, its strongest level since January 2021, as Malaysian government bonds rallied after the central bank kept the benchmark interest rate unchanged, drawing comfort from a resilient economy and moderate inflation.

The rally is supported by Malaysia’s solid economic growth, narrowing yield differentials with the US, and strong fiscal credibility that helps to anchor sovereign risk and sustain strong demand for Malaysian government bonds, MUFG senior currency analyst Llyod Chan told The Edge.

“We still look for further ringgit strength” which could end the year at 3.95 against the US dollar, he said.

The ringgit is still one of the best performing major Asian currencies in the first weeks of 2026. The appreciation since the start of the year adds to the more than 10% gain against the US dollar in 2025.