Ringgit closes higher against major currencies, dips slightly vs. US dollar

KUALA LUMPUR, 24 SEPTEMBER 2026 —

KUALA LUMPUR, Sept 24 – The Malaysian ringgit finished the day stronger against a basket of major currencies but slipped against the United States dollar, falling to RM4.0840/4.0880 at 6 pm local time from Wednesday’s close of RM4.0780/4.0825.

The move was driven by upbeat U.S. economic data that reinforced expectations of further interest‑rate hikes by the Federal Reserve.

The dip against the greenback came after a volatile morning session in which the ringgit weakened to RM4.0940 before regaining ground to RM4.0793 in the afternoon. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the recovery happened even though the U.S. dollar remained strong, with the U.S. Dollar Index (DXY) hovering around 101 points. “The ringgit’s recovery happened even though the U.S. dollar remained strong, with the U.S.

Dollar Index staying at around 101 points,” he told Bernama.

At the close, the ringgit traded higher against a basket of major currencies. Against the euro it moved to RM4.6451/4.6497 from RM4.6522/4.6573 at Wednesday’s close. Against the British pound it advanced to RM5.4023/5.4076 from RM5.4156/5.4216. Against the Japanese yen it strengthened to RM2.5723/2.5750 from RM2.5836/2.5868. The local currency also traded mostly higher against its ASEAN peers.

It slightly increased against the Singapore dollar to RM3.1906/3.1940 from RM3.1909/3.1947 at Wednesday’s close and strengthened versus the Thai baht to RM12.1950/12.2121 from RM12.2599/12.2782. The ringgit also advanced against the Indonesian rupiah to RM227.9/228.2 from RM228.8/229.2 and remained unchanged against the Philippine peso at RM6.51/6.52.

The day’s movement reflects the broader impact of U.S. economic data on global currency markets. The United States released a series of indicators that suggested continued strength in the economy, prompting traders to anticipate further tightening by the Federal Reserve. This expectation has kept the U.S. dollar firm against most major currencies, including the ringgit.

In the context of Malaysia’s own economic environment, the ringgit’s performance against the dollar is significant. The currency’s volatility against the greenback is closely watched by exporters, importers, and investors who rely on the ringgit for cross‑border transactions. A weaker ringgit against the dollar can increase the cost of imported goods and services, while a stronger ringgit can make Malaysian exports more competitive abroad.

The ringgit’s relative strength against the euro, pound, and yen suggests that market participants are also factoring in the economic outlook of the Eurozone, the United Kingdom, and Japan. The modest gains against the Singapore dollar and Thai baht indicate that the ringgit is holding its ground against regional competitors, which is important for Malaysia’s trade balance and foreign‑exchange reserves.

The unchanged rate against the Philippine peso points to a stable relationship between the two currencies, despite differing economic conditions in the two countries. The slight improvement against the Indonesian rupiah may reflect regional sentiment and the relative stability of the Indonesian economy.

The day’s data also underscores the interconnectedness of global financial markets. While the ringgit weakened against the dollar, it gained against other major currencies, illustrating how shifts in one currency pair can be offset by movements in others. This dynamic is particularly relevant for Malaysian businesses that operate in multiple currencies and for investors who manage diversified portfolios.

The Federal Reserve’s policy stance remains a key driver of currency movements. The U.S. economic data released on Thursday reinforced expectations that the Fed will continue to raise rates, which has kept the dollar strong. Traders are likely to monitor upcoming U.S. data releases and Fed statements closely, as any change in the Fed’s outlook could quickly alter the ringgit’s trajectory against the dollar.

For Malaysian policymakers, the ringgit’s performance against the dollar and other currencies will be a key consideration in assessing the impact of global economic conditions on domestic inflation, trade, and investment. The central bank will need to balance the need to support growth with the risk of currency volatility that could affect import prices and external debt servicing.

In the short term, the ringgit’s mixed performance against the dollar and other currencies suggests that market participants are closely watching U.S. economic data and Fed policy signals. The currency’s relative strength against regional peers indicates that Malaysia’s economic fundamentals remain resilient, but the ongoing volatility against the dollar highlights the sensitivity of the ringgit to global financial developments.

The day’s close leaves the ringgit in a position where it is stronger against most major currencies but weaker against the U.S. dollar, a pattern that is likely to persist as long as U.S. economic data continue to support expectations of further tightening by the Federal Reserve. Malaysian businesses and investors will need to remain vigilant to manage currency risk in an environment where the ringgit’s value is influenced by both domestic and international factors.

Related: Bank Muamalat Malaysia Bhd · Kuala Lumpur