The currency rose more than any other in emerging markets as Prime Minister Najib Razak was cleared in a corruption probe and oil traded 15% off its lowest in more than decade.
The ringgit extended an advance beyond its 100-day moving average, a bullish signal for a currency that’s appreciated this month, whilst most Asian counterparts weakened.
With Najib now able to give his full attention to an economy hit by a slump in commodities, focus will be on Thursday’s budget revisions for a clearer picture on the economic outlook.
“With the political risk out of the way, sentiment has improved,” said Nizam Idris, head of foreign-exchange and fixed- income strategy at Macquarie Bank Ltd in Singapore.
The ringgit strengthened for a fourth day in the longest stretch of gains since September. It rose 0.9% to 4.2565 a dollar in Kuala Lumpur and reached a seven-week high of 4.2347, according to prices from local banks compiled by Bloomberg.
The currency has appreciated 0.9% versus the dollar in January, compared with a 2.7% loss in the Indian rupee and the South Korean won’s 2.5% decline.