Malaysia

Ringgit remains steady against US dollar

Image Credits: UnsplashImage Credits: Unsplash
  • The Malaysian Ringgit opened little changed against the US Dollar, reflecting market stability.
  • Monetary policies from Bank Negara Malaysia and the US Federal Reserve significantly influence the Ringgit's performance.
  • Global economic conditions, commodity prices, and tourism recovery are crucial factors for the Ringgit's future outlook.

The Malaysian Ringgit opened little changed against the US Dollar on June 7, 2024, maintaining a level of stability that has been observed in recent weeks. This performance comes amid a complex backdrop of global economic conditions and monetary policies that continue to shape the forex market.

The ringgit remained relatively stable against the US dollar at the start of the day, as investors were waiting for new information to guide their actions. This statement underscores the cautious sentiment prevailing in the market as traders and investors look for new economic data and policy signals to guide their decisions.

Factors Influencing the Ringgit's Performance

Monetary Policies

One of the primary factors influencing the Ringgit's performance is the monetary policy stance of both Bank Negara Malaysia (BNM) and the US Federal Reserve. BNM has maintained its Overnight Policy Rate (OPR) at 3%, a level that aims to balance economic growth and inflation. On the other hand, the US Federal Reserve's recent dovish pivot, where it signaled a potential pause in rate hikes, has also played a role in stabilizing the Ringgit.

Global Economic Conditions

The global economic outlook remains a significant determinant of currency performance. The International Monetary Fund (IMF) has projected a slowdown in global growth to 2.9% in 2024 from 3% in 2023. This deceleration, coupled with China's economic performance, has implications for the Ringgit. A more stable Chinese economy and renminbi are expected to reduce downward pressure on the Ringgit.

Commodity Prices and Tourism

Commodity prices and tourism are also crucial to Malaysia's economic health and, by extension, the Ringgit's strength. The stabilization of commodity prices in 2023 and the continued recovery of the tourism sector are positive signs. As Lee from OCBC Bank notes, "continued tourism recovery should help with net services balance".

Market Sentiment and Future Outlook

Market sentiment remains cautious as traders await new data and policy announcements. The Ringgit's future performance will likely hinge on several factors, including the pace and extent of US Federal Reserve rate cuts, global economic trends, and domestic economic policies.

Christopher Wong, an FX strategist at OCBC Bank, expects the Ringgit's performance to improve modestly in 2024, driven by a more stable global economic environment and supportive domestic factors. However, significant appreciation to levels seen in the past, such as RM3.80 to the US Dollar, is unlikely in the near term.

The Malaysian Ringgit's steady performance against the US Dollar reflects a period of relative stability in the forex market. Influenced by a mix of global economic conditions, monetary policies, and domestic economic factors, the Ringgit's future trajectory will depend on how these elements evolve. As the market awaits fresh leads, the cautious sentiment is likely to persist, guiding the Ringgit's performance in the coming months.


Finance Malaysia
Image Credits: Open Privilege
FinanceAugust 1, 2025 at 10:30:00 AM

Ringgit holds steady against US dollar, strengthens against other major currencies

The ringgit opened flat against the US dollar on August 1, 2025, trading at 4.2650/2850, but gained ground against most major currencies. The...

Finance United States
Image Credits: Unsplash
FinanceJuly 31, 2025 at 11:30:00 AM

US Fed September rate cut odds drop below 50% after Powell comments

The Federal Reserve’s July 30 decision to keep interest rates unchanged may seem routine on the surface. But beneath the consensus policy statement...

Finance Malaysia
Image Credits: Open Privilege
FinanceJuly 28, 2025 at 10:00:00 AM

Ringgit gains amid cautious global trade outlook

The ringgit’s quiet lift against the US dollar at Monday’s open—settling at RM4.2110/2310—offers little by way of volatility, but much in terms of...

Finance Malaysia
Image Credits: Open Privilege
FinanceJuly 25, 2025 at 1:30:00 PM

Ringgit strength against USD signals early policy caution

The ringgit opened firmer against the US dollar this week, attracting cautious optimism from market observers. But beneath the surface, the move is...

Finance Singapore
Image Credits: Unsplash
FinanceJuly 24, 2025 at 12:30:00 PM

Singapore dollar strengthens on trade optimism

The Singapore dollar’s recent gains, driven by optimism over emerging trade deals and a steadier global macro backdrop, offer more than just a...

Finance United States
Image Credits: Unsplash
FinanceJuly 24, 2025 at 11:00:00 AM

Why political attacks on the Fed in 2025 go beyond interest rates

What began as a throwaway remark by US Treasury Secretary Scott Bessent—accusing the Federal Reserve’s economic forecasts of being “pretty politically biased”—isn’t merely...

Finance Malaysia
Image Credits: Open Privilege
FinanceJuly 23, 2025 at 9:30:00 AM

Malaysia's financial fundamentals earn IMF endorsement

The IMF’s 2025 External Sector Report offers a rare technical affirmation of Malaysia’s macro resilience. While the headline takeaway emphasizes strong external buffers...

Finance World
Image Credits: Unsplash
FinanceJuly 22, 2025 at 11:00:00 AM

Asian stock market sentiment lifts on tariff talks, earnings bets

While European indices remain defensive and US equity futures drift sideways, Asia’s major markets are edging higher. On Monday, the Nikkei rose 0.6%,...

Finance Singapore
Image Credits: Unsplash
FinanceJuly 21, 2025 at 10:30:00 AM

Singapore dollar policy easing likely as US tariff risks mount

The Singapore dollar’s weakness in July isn’t merely a reflection of a stronger US dollar—it’s a response to mounting structural pressures. As the...

Finance Malaysia
Image Credits: Open Privilege
FinanceJuly 21, 2025 at 10:00:00 AM

Ringgit strengthens further against US dollar in early trading

The ringgit opened the week on stronger footing against the US dollar, extending its upward momentum from last Friday. Bolstered by better-than-expected second-quarter...

Finance World
Image Credits: Unsplash
FinanceJuly 18, 2025 at 11:00:00 AM

Hong Kong’s follow-on fundraising surge poised to continue, say top bankers

While global IPO markets remain tentative, Hong Kong has quietly engineered a pivot: the action isn’t at the IPO bell—it’s what comes after....

Finance Malaysia
Image Credits: Open Privilege
FinanceJuly 18, 2025 at 9:00:00 AM

Ringgit upside potential hinges on structural conviction

The ringgit isn’t rallying on fundamentals. And that’s the point. For all the talk of undervaluation and eventual mean reversion, Malaysia’s currency sits...

Load More