Malaysian Ringgit Eases Against US Dollar Amid Geopolitical Tension

The Malaysian ringgit closed at 4.0905/4.0940 against the US dollar on Tuesday, August 11, 2026, marking a slight decline from Monday's close of 4.0885/4.0930. The currency's performance was mixed across other markets; while it slipped against the British pound, it gained value against the Japanese yen, the euro, the Singapore dollar, the Thai baht, the Philippine peso, and the Indonesian rupiah.

The US dollar strengthened throughout the day, driven by rising crude oil prices following the reopening of the Strait of Hormuz and ongoing geopolitical tensions. President Donald Trump contributed to the volatility by rejecting Iran's demands for compensation, asserting that Tehran should be held responsible for regional damage.

Market analysts and the Federal Open Market Committee are now focusing on upcoming US Consumer Price Index data due Wednesday. This data will help investors gauge inflation targets and the likelihood of a US interest rate hike in September. Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, suggested that monetary tightening might not be the most effective tool for bringing US inflation down to the 2% target.