Ringgit Opens Higher Against US Dollar After Sharp Decline

KUALA LUMPUR, June 2026 — The Malaysian ringgit opened higher against the US dollar on Friday, recovering from the previous session’s sharp decline as market sentiment remained cautious following the latest United States Federal Reserve policy decision.

At 8am, the local currency strengthened to 4.1130/4.1225 against the greenback, compared with Thursday’s close of 4.1145/4.1195.

The rebound came after the ringgit weakened by 1.29 percent against the US dollar in the previous session, a move that analysts described as relatively sharp compared with other regional currencies.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index remained elevated at 100.85 points following the Federal Open Market Committee decision, with investors closely watching the Fed’s interest rate projections.

He said the market appeared focused on projections suggesting that the US central bank could still raise the federal funds rate by 25 basis points later this year.

Despite the cautious tone from the Fed, global risk appetite improved after reports of a possible peace agreement between the United States and Iran, which could support the reopening of the Strait of Hormuz.

The development may help ease concerns over global oil supply disruptions and reduce pressure on crude oil prices, potentially leading to more moderate inflationary pressures worldwide.

However, the lack of clear forward guidance from the Federal Reserve has kept investors cautious, especially as markets continue to evaluate the direction of US interest rates and the strength of the US dollar.

At the opening, the ringgit also traded firmer against several major currencies. It appreciated against the Japanese yen, strengthened versus the euro and improved against the British pound.

Against regional currencies, the ringgit traded mostly higher. It gained against the Thai baht, Indonesian rupiah and Singapore dollar, while remaining almost unchanged against the Philippine peso.

Analysts said the ringgit could stabilise after the sharp depreciation seen in the previous session, although near-term movement is expected to remain sensitive to external developments.

Market participants will continue to monitor US monetary policy signals, global oil prices, geopolitical risks and regional currency performance for further direction.

The latest recovery suggests that the ringgit may regain some support if global risk sentiment continues to improve and concerns over oil supply disruptions ease.