KUALA LUMPUR, Sept 23 — The Malaysian ringgit reached a 30-month peak of 4.1815 against the US dollar on Friday, marking it as the top-performing currency globally this week. This surge follows the US Federal Reserve’s unexpected 50 basis points interest rate cut, which has energized markets worldwide.*

Since January, the ringgit has been on an upward trend, regaining over 11 percent of its value against the dollar this year. Analysts attribute this rise to increasing investor confidence in the Malaysian economy, fueled by foreign investments that boost demand for the currency.

Key factors include recent fiscal reforms, such as the recalibration of diesel subsidies, which have reassured investors about the government's commitment to reducing the fiscal deficit. Additionally, major economic initiatives like the Energy Transition Roadmap and a new Industrial Master Plan have attracted inflows into local companies.

As of August, global funds had invested nearly half a billion ringgit in Malaysian stocks, according to Bloomberg. Political stability under Prime Minister Datuk Seri Anwar Ibrahim has also contributed to this positive sentiment, as his coalition government remains intact, alleviating concerns about potential policy disruptions.