Malaysian Ringgit Fluctuates Amid US Data and Geopolitical Tension

The Malaysian ringgit experienced marginal fluctuations against the US dollar between August 6 and August 7, 2026, driven by US economic indicators and geopolitical instability. The currency opened slightly higher on August 6 at 4.0905/0960, supported by weaker-than-expected US ADP nonfarm employment and ISM non-manufacturing data. It closed the day stronger at 4.0875/4.0920, gaining against a basket of major and regional currencies including the euro and Singapore dollar, though it declined against the Thai baht.

By Friday morning, August 7, the ringgit eased to 4.0895/4.0960. Analysts expect the currency to remain defensive within a range of RM4.08 to RM4.10 as markets await the US Non-Farm Payrolls report. A resilient US labor market is expected to maintain support for the greenback.

Market sentiment shifted toward risk aversion following reports of attacks by the Islamic Revolutionary Guard Corps against actors supporting the US or Israel. These actions increased security concerns regarding energy flows in the Strait of Hormuz, triggering a safe-haven bid for the US dollar and a surge in crude oil prices. While the ringgit weakened against the US dollar and British pound on Friday, it maintained strength against the Japanese yen, euro, and Thai baht.