Local unit strengthens despite firmer US dollar, aided by softer inflation outlook
KUALA LUMPUR, Oct 20 — The ringgit opened mostly higher against major currencies on Tuesday despite a stronger US...
On October 20, the Malaysian ringgit opened higher against major currencies, buoyed by a softer domestic inflation outlook and expectations of a potential normalisation of the Overnight Policy Rate (OPR). The Department of Statistics Malaysia (DOSM) reported that inflation declined to 1.8% in September 2026 from 1.9% in August. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, forecasted the ringgit to trade within a range of RM4.07 to RM4.08 against the US dollar.
He noted that investors are closely watching geopolitical risks in West Asia following Iran’s navy’s reported attack on the US military base at Konarak. The US Dollar Index (DXY), which gauges the greenback's value against a basket of currencies, increased by 0.15% to 101.989 points. The ringgit demonstrated strength against the Japanese yen, British pound, Indonesian rupiah, Philippine peso, and Singapore dollar, while weakening slightly against the euro and Thai baht.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
