KUALA LUMPUR, Sept 24 — The ringgit surged to its highest level since December 2021, rising 0.7 per cent to 4.171 against the US dollar today, following significant stimulus measures announced by China’s central bank.

This marks the ringgit as the best-performing currency in the region this year, aiming for its strongest performance since 2017.

China’s central bank introduced broad monetary support and measures for the property market, leading to a rally in both Chinese stocks and the yuan, which hit its highest level since May 2023.

"The stimulus measures have had an impact on Asian currencies more broadly beyond just the yuan,” Michael Wan, a senior currency analyst at MUFG, was quoted as saying by Reuters.

He noted that other Asian currencies closely linked to China, like the ringgit, have benefited from these developments.

The ongoing anticipation of the US Federal Reserve’s easing cycle has contributed to the appreciation of risk-sensitive currencies, including the ringgit.

However, uncertainties surrounding the US presidential election this November 5 have left traders cautious about potential impacts on emerging-market assets.

"The fourth quarter will likely be more uncertain compared to a strong September, as headlines could be impacted by the US election and the pace of Fed rate cuts,” Lynn Song, ING’s chief economist for Greater China, was quoted as saying in the same Reuters news report.