SYDNEY – Malaysia’s ringgit rose to a one-month high after policymakers ramped up their coordination with state-linked firms to lift the currency from a 26-year low.

The currency advanced as much as 0.6 per cent to 4.7185 per US dollar in early Asian trading on March 4, its strongest level since Feb 2.

The ringgit has been the best performer in Asia in the past week.

Against the Singapore dollar, the ringgit closed at 3.5157 per Singdollar at 5.59pm on March 4 in Singapore.

Policymakers have sought to drive more inflows into the market by urging state-linked firms to repatriate foreign investment income and convert it into ringgit more consistently.

Bank Negara Malaysia will enhance its engagements with corporates and investors to further encourage conversions and boost sentiment towards the ringgit, according to a statement on March 1.

“The conversion to ringgit moves may have helped” the currency in early trading, said Mr Saktiandi Supaat, head of forex research at Maybank in Singapore.

The Malaysian authorities have said the ringgit should be stronger given the nation’s improving economic outlook.

The central bank is prepared to sell US dollars from its reserves to curb excessive moves in the ringgit. BLOOMBERG