KUALA LUMPUR, May 22 -- The ringgit could post the strongest gains in Southeast Asia if exporters convert their foreign earnings into local currency, driven by the country's substantial foreign-currency deposits.

Foreign deposits across Malaysia, Thailand, the Philippines and Indonesia have surged to US$62.2 billion (RM265 billion) as of March, approaching record levels set the previous month, Bloomberg reported.

Malaysia accounts for nearly all of this growth, with its foreign deposit expansion outpacing regional peers significantly.

The focus on foreign deposits has intensified as investors monitor potential currency conversions amid growing scepticism toward the US dollar due to policy and economic concerns.

Taiwan's exporters demo...