Malaysian Ringgit Fluctuates Amid Strong US Dollar

The Malaysian ringgit faced downward pressure against the US dollar between October 4 and October 6, 2026, despite showing strength against several regional peers. On October 4, the currency closed at 4.0830/4.0875, sliding even as the probability of a US Federal Reserve interest rate hike dropped below 50% following lower-than-expected PCE inflation data.

By Monday, the ringgit eased further to 4.0845/4.0890 against the US dollar, though it gained against the Singapore dollar, Thai baht, and Indonesian rupiah. Afzanizam Abdul Rashid noted that the US dollar's momentum was driven by risk-off sentiment and political instability in Europe, specifically citing a snap election in Spain that pushed the euro to a 17-month low.

On Tuesday, the ringgit opened slightly higher at 4.0835/4.0895. However, it continued to face pressure from a rising US dollar index, which climbed to 102.167 points as investors sought safe-haven assets. While the currency strengthened against the British pound and Japanese yen, it weakened against the euro and Singapore dollar. Analysts expect the ringgit to remain within a narrow trading range due to sustained demand for the US dollar and rising interest rate expectations.