On a Tuesday morning in Kuala Lumpur, the ringgit edged upward against the US dollar and most of its major peers, a small movement that carries weight only when set against the quiet discipline of the past month. Its steady drift within a narrow band reflects a familiar tension: a nation's underlying strength pulling against the distant turbulence of West Asia and the anticipation of decisions in Washington and at home. As an economist at Bank Muamalat frames it, the currency is holding its ground not out of luck but because the fundamentals still invite confidence. The real question now rests
Ringgit Opens Higher Against US Dollar as Traders Await Fed Meeting
A small move, but it came across the board
On a Tuesday morning in Kuala Lumpur, the ringgit edged upward against the US dollar and most of its major peers, a small movement that carries weight only when set against the quiet discipline of the past month. Its steady drift within a narrow band reflects a familiar tension: a nation's underlying strength pulling against the distant turbulence of West Asia and the anticipation of decisions in Washington and at home. As an economist at Bank Muamalat frames it, the currency is holding its ground not out of luck but because the fundamentals still invite confidence. The real question now rests with the coming central bank deliberations, when the rhythm of stability may give way to a new chapter.
At 8am in Kuala Lumpur on Tuesday, October 27, the ringgit stood at 4.0840 against the US dollar, a small step up from the 4.0855 it closed at the day before. The gain was modest, but it ran across the board, lifting the currency against the dollar and most of the majors it is measured against.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia, told Bernama that Malaysia's resilient economic fundamentals are what keep the ringgit steady, even as risk lingers in West Asia. That risk was tangible on Monday, when officials from Saudi Arabia, Pakistan and Turkiye travelled to Iran for talks. The timing added weight, since members of the US Federal Open Market Committee had just begun their two-day meeting.
Over the past month the ringgit has stayed within a tight band of RM4.07 to RM4.09, as traders balanced outside risks against fundamentals that still offer value. Against the yen, pound and euro it also edged higher, while its Asean crosses were mixed. Looking ahead, Mohd Afzanizam expects the currency to hold its course, with markets turning their attention to Bank Negara Malaysia's November 5 meeting, where normalising the overnight policy rate is increasingly discussed.
At 8am in Kuala Lumpur on Tuesday, October 27, the ringgit stood at 4.0840/0905 against the US dollar, a shade stronger than the 4.0855/0895 it had closed at the session before. The move was small, but it came across the board: the local note opened higher against the dollar and against most of the major currencies it is tracked against.
The explanation came from Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, who spoke to Bernama. He pointed to Malaysia's resilient economic fundamentals as the thing continuing to hold up the ringgit, even as geopolitical risk lingers in West Asia.
That risk was concrete on Monday. Officials from Saudi Arabia, Pakistan and Turkiye travelled to Iran for diplomatic talks, and Mohd Afzanizam said developments there remained in focus for the market. The timing mattered, he noted, because members of the US Federal Open Market Committee began a two-day meeting on Tuesday.
He described a currency that has been moving within a tight band. Over the past month, the ringgit has traded between RM4.07 and RM4.09 to the dollar, as traders weighed outside risks against fundamentals that, in his words, continue to offer value to investors. Tuesday's opening level sits well inside that range.
Against other majors, the gains were modest but consistent. The ringgit rose to 2.5925/5968 against the Japanese yen from Monday's close of 2.5961/5988. It advanced against the British pound to 5.4497/4584 from 5.4517/4570, and against the euro to 4.5631/5703 from 4.5774/5819.
The picture among Asean neighbours was more mixed, though mostly positive. The ringgit climbed against the Singapore dollar to 3.1881/1935 from 3.1920/1954, and against the Indonesian rupiah to 225.2/225.6 from 225.3/225.5. It eased against the Thai baht, moving to 12.0868/1110 from 12.0766/0930, and held flat against the Philippine peso at 6.39/6.40.
Mohd Afzanizam expects the ringgit to hold its current trajectory through the day. Beyond the Fed's meeting, he said market attention is turning to Bank Negara Malaysia's Monetary Policy Committee meeting on November 5, where discussion about normalising the overnight policy rate has been growing. Until then, the ringgit's one-month range of RM4.07 to RM4.09 is the line to watch.
Citations marquantes
The ringgit has traded within a narrow RM4.07 to RM4.09 range over the past month as traders weigh external risks against resilient fundamentals.— Dr Mohd Afzanizam Abdul Rashid, chief economist, Bank Muamalat Malaysia Bhd
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Economy & Finance