Ringgit Strengthens to RM4.07 Against US Dollar as Greenback Weakens

KUALA LUMPUR, JULY 2026 — The Malaysian ringgit opened firmer against the US dollar on Wednesday, strengthening to the RM4.07 level as weaker-than-expected US consumer confidence data weighed on the greenback.

At 8.01am, the local currency rose to 4.0775/0870 against the US dollar from Tuesday’s close of 4.0825/0870. The improvement reflected a more supportive external environment for emerging market currencies, especially as the US dollar softened following weaker economic indicators.

The US Conference Board Consumer Confidence Index came in at 91.2 points in June, below market expectations of 94.4 points. The weaker reading raised fresh questions over the strength of the US economy and reduced some support for the US dollar.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants are expected to remain cautious ahead of the US nonfarm payrolls report, which is closely watched by investors for clues on the Federal Reserve’s next interest rate direction.

The nonfarm payrolls data is expected to show whether the US labour market is cooling or still strong enough to support a tighter monetary policy stance. A stronger reading could support the US dollar, while weaker data may provide further room for the ringgit to strengthen.

Despite the positive opening, analysts said the ringgit’s near-term movement will continue to depend heavily on external developments, especially US interest rate expectations, global risk appetite and the direction of crude oil prices.

Mohd Afzanizam noted that market sentiment remains focused on the Federal Reserve’s policy direction, even as crude oil prices remain relatively stable. West Texas Intermediate crude was hovering around US$69.50 per barrel, while Brent crude stood around US$72.92 per barrel.

At the opening, the ringgit also traded mostly higher against major currencies. It appreciated against the British pound and Japanese yen, although it eased slightly against the euro.

Against regional currencies, the local note showed mixed performance. It strengthened against the Singapore dollar, remained almost flat versus the Indonesian rupiah and was unchanged against the Philippine peso.

The latest movement comes after Bank Negara Malaysia and the Financial Markets Committee said they would continue efforts to support the ringgit, including measures to attract foreign inflows and encourage repatriation of overseas earnings by state-linked companies and businesses.

The central bank previously said Malaysia’s economic fundamentals remain strong and that the domestic foreign exchange market continues to function smoothly despite recent pressure on the ringgit.

For businesses and investors, the ringgit’s recovery to the RM4.07 level offers some relief, especially for importers and companies exposed to foreign currency costs. A stronger ringgit can help reduce imported inflation and ease pressure on selected consumer and industrial goods.

However, exporters may watch the currency movement more carefully, as a stronger ringgit could affect competitiveness if the appreciation continues sharply.

Still, analysts expect cautious trading to continue until there is clearer direction from the Federal Reserve and the latest US labour market data.