KUALA LUMPUR, Jan. 29 -- The ringgit's sharp rise over the past year is being fuelled by deeper structural strengths in Malaysia's economy, rather than simply riding on the back of a softer US dollar - a sign that the currency's gains may prove more durable.

An analysis by Bloomberg shows that global macro factors such as shifts in risk appetite and movements in the greenback account for only about a quarter of the ringgit's roughly 12 per cent appreciation over the past 12 months, the strongest performance among Asian currencies.

The bulk of the advance has instead been underpinned by firm domestic fundamentals, including stronger-than-expected growth and rising investment inflows, which have pushed the ringgit to its highest level sin...