Malaysia’s BNM pledges to ensure ringgit ‘doesn’t run too far’

[KUALA LUMPUR] Bank Negara Malaysia will be on guard to rein in any volatility in the ringgit even as market uncertainty remains high, according to a central bank official.

The central bank will ensure markets are properly functioning and the exchange rate “doesn’t run too far,” Deputy Governor Adnan Zaylani Mohamad Zahid said at an event in Kuala Lumpur on Tuesday (Jun 17). 

“We are not out of the woods yet,” given the high level of uncertainty in the markets with geopolitics adding to anxiety, he added.

The ringgit is trading near its strongest level since October and is the top performer among emerging South-east Asian currencies this quarter. Coordinated measures by the government and central bank to encourage flows, along with narrowing interest rate differentials between Malaysia and the US, have helped buoy the ringgit. BLOOMBERG