The central bank in Malaysia has announced it will intervene in the foreign exchange market to stabilise the Ringgit due to recent "excessive" losses.

Malaysia's currency is currently trading close to a seven-month low and has lost almost 6% of its value against the Dollar in 2023, falling more than its Southeast Asian peers.

According to the central bank - Bank Negara Malaysia – the level of the Ringgit's depreciation doesn't reflect economic fundamentals, and the recent volatility was excessively higher than historical movements, Reuters news agency reports.

"As per its statutory mandate, Bank Negara Malaysia will intervene in the foreign exchange market to stem currency movements that are deemed excessive," according to a statement by Bank Negara Malaysia Assistant Governor Adnan Zaylani.

He went on to say that the value of the Ringgit will continue to be determined by the market. Yet continuing government efforts to boost the country's export-fuelled economy will help to make sure the Ringgit better conveys Malaysia's fundamentals.

The central bank added that clarity in terms of the US Federal Reserve's interest rate and further stimulus measures in China – the country's largest trading partner – could also offer support to the Ringgit.

Furthermore, earlier in June, Malaysia's finance ministry said it would put in place structural policies with the aim of bolstering fund inflows and foreign investment to support the Ringgit.