Malaysian Ringgit Fluctuates Following US Economic Data

The Malaysian ringgit experienced volatility between August 3 and August 4, 2026, driven by geopolitical shifts and US economic indicators. On Monday, the currency opened higher at 4.0805/4.0900. This gain followed a decision by Donald Trump to cancel planned military strikes against Iran, which lowered oil prices and weakened the US dollar as markets anticipated a deal regarding Iran's nuclear program and the reopening of the Strait of Hormuz.

By Tuesday, the ringgit eased against the US dollar, closing at 4.0945/4.0985. This decline was triggered by the release of July manufacturing data from the Institute for Supply Management, which exceeded expectations and pushed the US Dollar Index above 100 points. Mohd Afzanizam Abdul Rashid, chief economist of Bank Muamalat Malaysia Bhd, attributed the renewed strength of the greenback to this positive US economic data.

Despite the dip against the US dollar on Tuesday, the ringgit strengthened against a broader basket of currencies, including the Japanese yen, euro, British pound, and regional peers such as the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.