As of Friday, the ringgit was up 1.6% against the US dollar at 4.067, its highest level in seven months. The local currency gained 1.1% against the Singapore dollar, and was traded at below the 3.00 mark for the first time in four months.
In January, investors from overseas added more than RM1bil worth of stocks into their portfolios, the first monthly net purchase since September last year. The total outflow last year was around RM11.65bil.
The market is projecting flattish growth in the fourth quarter of 2018.
The dovish Fed is expected to keep pressure on the US dollar, but the international focus this week will be on the trade talks between the United States and China.