The Malaysian ringgit traded around 4.10 per USD in late June, remaining close to its lowest level since November last year, as US rate-hike expectations continued to support the greenback and weigh on emerging-market currencies. Domestic political uncertainty also rose ahead of two state elections. The ringgit has now fallen about 4% so far this month. This prompted Bank Negara Malaysia to signal it would step up measures to stabilise the currency, including efforts to attract foreign inflows and encourage state-linked firms and corporates to repatriate overseas earnings. The central bank also noted that recent outflows primarily reflected portfolio rebalancing after earlier gains in the ringgit, rather than a deterioration in Malaysia’s underlying fundamentals. The country’s economic profile is assessed to remain strong, while the onshore foreign exchange market continues to function smoothly.