Ringgit opens higher as inflation eases, OPR normalisation in focus

Malaysia's currency, the ringgit, opened stronger against the US dollar on Tuesday, buoyed by a decline in domestic inflation and speculation of a potential decrease in the Overnight Policy Rate (OPR). At 8 a.m., the ringgit hit 4.0780/4.0850 against the US dollar, up from yesterday's closing rate of 4.0805/4.0845. According to the Department of Statistics Malaysia (DOSM), the inflation rate dropped to 1.8% in September 2026, down from 1.9% in August.

Afzanizam Rashid, the chief economist at Bank Muamalat Malaysia Bhd, forecasted that the ringgit would fluctuate within a range of RM4.07 to RM4.08 against the US dollar throughout the day. He noted that traders were also keeping a close eye on geopolitical tensions in the Middle East, following Iran's navy claiming the US military had struck the Konarak naval base.

Rashid explained that the market was entering a blackout period, during which US Federal Reserve officials would refrain from issuing public statements before the upcoming Federal Open Market Committee (FOMC) meeting. Throughout the morning, the ringgit demonstrated an overall upward trend against major currencies, including the Japanese yen and the British pound.

However, it exhibited a slight decline against the euro. The currency also showed a positive shift against most of its Southeast Asian counterparts, such as the Indonesian rupiah, Philippine peso, Singapore dollar, and Thai baht.