Ringgit sinks to seven-month low despite record bond inflows as Fed fears dominate
But analysts think the weakness is a correction rather than the beginning of a depreciation trend
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[KUALA LUMPUR] The ringgit’s slide to its weakest level since November came despite record foreign bond inflows, highlighting the growing influence of US Federal Reserve policy expectations on Malaysia’s improving economic fundamentals.
The currency has depreciated 1.7 per cent over the past week, hitting 4.1349 against the US dollar on Wednesday (Jun 24). It has retreated significantly from its peak of 3.8847 on Feb 27, after which the outbreak of the US-Iran war triggered a flight to safety.
This also moves it further away from the psychologically important RM4 level, and marks its weakest level since November 2025, according to MBSB Research.
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