Ringgit Opens Flat Against US Dollar as Strong Malaysian Trade Data Supports Sentiment

KUALA LUMPUR, JULY 2026 – The Malaysian ringgit opened almost unchanged against the US dollar on Tuesday as the country’s strong trade performance helped balance continued uncertainty across global financial markets.

At 8am, the local currency stood at 4.0895/0950 against the greenback, maintaining the same level recorded at Monday’s close.

Market sentiment received support from Malaysia’s latest trade figures, which showed exports rising 45.4% year-on-year to RM177.9 billion in June 2026. Imports increased by 43.9% to RM163 billion, while the country’s trade surplus expanded by 64.9% to RM14.9 billion.

The robust data indicated sustained demand for Malaysian products and provided support for the ringgit at a time when investors remained cautious about geopolitical developments in the Middle East.

SPI Asset Management managing partner Stephen Innes said the US dollar strengthened moderately as investors reacted to renewed regional tensions. Market concerns increased following warnings from US President Donald Trump against Iran and new threats involving Yemen’s Iran-aligned Houthi movement and shipping activity in the Red Sea.

Oil prices initially rose following the developments before giving up part of their gains. Brent crude was reported 0.12% lower at US$82.38 per barrel, while West Texas Intermediate declined 0.45% to US$88.82 per barrel at the time of the report.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit to remain within a limited trading range against the US dollar in the near term.

He said the US Dollar Index remained elevated at 100.996 points as weak risk appetite encouraged investors to favour safer assets. Continuing tensions in the Middle East, including possible disruption to vessels passing through the Bab el-Mandeb Strait, were expected to remain a major focus for currency traders.

The economist projected that the ringgit would trade between 4.09 and 4.10 against the US dollar over the near term. This suggests that strong domestic fundamentals may provide support, although external risk factors could limit significant gains.

Against other major currencies, the ringgit recorded broader improvements. It strengthened against the euro to 4.6686/6749 from 4.6743/6806 and appreciated against the British pound to 5.4926/5000 from 5.5049/5123. It also advanced slightly against the Japanese yen to 2.5169/5205 from 2.5177/5212.

Performance against regional currencies was mixed. The ringgit improved against the Singapore dollar to 3.1675/1722 and strengthened against the Thai baht to 12.1512/1734.

However, it remained unchanged against the Indonesian rupiah at 227.8/228.2 and the Philippine peso at 6.63/6.64.

Malaysia’s stronger export and trade-surplus figures could continue to provide fundamental support for the local currency. Nevertheless, the ringgit’s immediate direction will likely depend on changes in global risk sentiment, movements in the US dollar and further developments affecting Middle Eastern energy and shipping routes.