Strong trade data supports ringgit despite softer close against US dollar

KUALA LUMPUR, October 19 — The ringgit finished the trading day stronger against a range of major currencies on Monday, benefiting from Malaysia's most recent economic indicators. However, the local currency slipped against the US dollar. By 6pm, the ringgit fell to 4.0805/0845 against the US dollar, down from last Friday's level of 4.0795/0835.

The Department of Statistics Malaysia (DOSM) announced that Malaysia's inflation rate declined to 1.8% in September 2026, down from 1.9% in the prior month. Meanwhile, total trade volume jumped by 53.7% to RM396.5 billion, up from RM258.1 billion a year ago. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, stated that the ringgit displayed resilience in the face of external challenges.

Specifically, he pointed to MSCI's possible downgrade of Indonesia's stock market from "emerging market" to "standalone market," which led to a depreciation of the rupiah to over 18,000 rupiah per US dollar. This depreciation also caused the Jakarta Composite Index (JCI) to fall by 3.57% to 5,000.175 points. The impact on regional currencies, though, has been largely contained and localized, according to him.

Consequently, the US dollar/ringgit exchange rate has been fluctuating within a tight range of RM4.0788 to RM4.0828. At the day's close, the ringgit emerged stronger against a basket of major currencies, including the Japanese yen, euro, British pound, Indonesian rupiah, Philippine peso, Singapore dollar, and Thai baht.