The ringgit’s surge to a five-year high against the US dollar is prompting Malaysians, especially travellers, to exchange the currency early, keeping money changers busy despite the usual post-festive lull.
“We had expected the crowd to decline this week, but it is still at around 70 per cent,” Malaysian Association of Money Services Business president Jajakhan Kader Gani said.
He said the ringgit’s current level of around 4.04 against the US dollar is among the strongest in recent years, reflecting a gain of about 20 per cent from previous levels near 4.80.
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“This is what we are seeing in the foreign exchange market now,” he said.
The Japanese yen, which remains at multiyear lows, continues to see the strongest demand, followed by China’s yuan and Indonesian rupiah.
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Demand for the rupiah remains strong but interest in the Thai baht has slowed due to flooding in southern Thailand and geopolitical concerns.