Ringgit opens higher versus US dollar for 10 consecutive days

The Malaysian ringgit opened stronger for ten consecutive days against the US dollar on Friday, indicating growing confidence in the local currency at the beginning of trading. At 8am, the ringgit increased to 4.0570/0625 against the US dollar, up from Friday's close of 4.0575/0620. The currency was near a seven-week high, having opened at 4.0560 on September 9, 2026.

Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the rise to the US Dollar Index (DXY) falling 0.33 percent to 101.854 points. Despite stronger-than-expected US GDP growth in the third quarter of 2026 and a higher PCE inflation rate in September, the two-year and 10-year US Treasury yields dropped by 10 and eight basis points to 4.60 percent and 4.94 percent, respectively.

This decline in yields led analysts to believe the Federal Reserve (Fed) may alter its monetary policy stance. Consequently, the ringgit is expected to continue its positive trend in the near term, as there is limited room for additional Fed tightening. The ringgit-US dollar pair could fluctuate between RM4.05 and RM4.07 throughout the day, according to Dr Rashid.

Against other major currencies, the ringgit showed mixed results. It weakened against the British pound, slipped against the euro, and edged lower against the Japanese yen. However, it remained stable against the Indonesian rupiah and flat against the Philippine peso. Against its Asean peers, the ringgit traded flat against the Singapore dollar but weakened against the Thai baht.