Malaysia's ringgit reached its strongest level since October 2024 on Tuesday, trading around 4.188 against the dollar. This appreciation is attributed to significant foreign bond inflows and a general weakening of the U.S. dollar. The ringgit's rally follows improved global trade relations, boosting investor confidence in export-driven economies like Malaysia. In a report from Bank Negara Malaysia, it was noted that foreign investors injected $2.9 billion into Malaysian bonds in May, marking the most substantial monthly inflow since October 2013. This surge reflects growing optimism about Malaysia’s fiscal and monetary policies. Additionally, speculation that the Federal Reserve might reduce interest rates later this year is exerting downward pressure on the dollar, further benefiting the ringgit. Recent data indicates Malaysia's manufacturing PMI experienced its 21st consecutive month of contraction in June. However, the pace of contraction was the mildest since February, as reductions in output, new orders, and external demand slowed, indicating possible signs of stabilization in the industrial sector.