Ringgit opens higher vs US dollar for tenth straight day

The Malaysian ringgit began Friday's trading higher against the US dollar for the 10th straight day, indicating persistent optimism towards the local currency at the beginning of the market session. At 8am, the ringgit rose to 4.0570/4.0625 against the greenback, up from Thursday's close of 4.0575/4.0620. The local currency is currently near a seven-week high, following its previous opening level of 4.0560 on September 9, 2026.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid explained that the US Dollar Index fell 0.33% to 101.854 points, despite stronger-than-anticipated US gross domestic product growth in the third quarter of 2026 and a higher personal consumption expenditure inflation rate in September. Additionally, the two-year and 10-year US Treasury yields decreased by 10 and eight basis points, respectively, to 4.60% and 4.94%.

These factors suggest the market is pricing in a potential shift in the Federal Reserve's monetary policy direction. Consequently, the ringgit is expected to continue its upward trajectory in the short-term, given the limited room for further Federal Reserve tightening. The ringgit-US dollar pair could remain between RM4.05 and RM4.07 throughout the day, according to Afzanizam.

When compared to other major currencies, the ringgit opened lower. It declined against the British pound, falling from 5.4009/5.4069 to 5.4275/5.4348, and slipped against the euro, moving from 4.5176/4.5226 to 4.5365/4.5427. The ringgit also edged lower against the Japanese yen, moving from 2.5685/2.5715 to 2.5707/2.5743. Against its Asean counterparts, the ringgit was relatively stable, with minimal changes against the Indonesian rupiah, Philippine peso, and no significant movement against the Singapore dollar and Thai baht.