The ringgit opened slightly lower against the US dollar on Wednesday, with the local currency remaining within a narrow trading range as investors assessed mixed global market developments.
At 8:00 am, the ringgit eased slightly to 4.0840/4.0885 against the US dollar from Tuesday's close of 4.0835/4.0880.
Bank Muamalat Malaysia Bhd Chief Economist Afzanizam Rashid noted that the 0.33% decline in the US Dollar Index (DXY) to 101.833 points, alongside Brent crude oil prices hovering around US$100 per barrel, provided support for the ringgit.
He added that global equity markets also posted positive performances driven by confidence in stronger corporate earnings, reflecting improved sentiment across financial markets.
According to him, increased risk appetite among investors also supported the ringgit during today's trading.
Malaysian Economy Remains Robust
Domestic economic fundamentals continue to support the ringgit following the Malaysian economy's 6.0% growth in the second quarter of 2026, up from 5.4% in the first quarter. Data from Bank Negara Malaysia (BNM) indicates that growth remains underpinned by domestic demand and strong export performance.
These developments provide a firmer foundation for the local currency as markets continue to navigate uncertainties regarding global interest rates and US dollar movements.
OPR Remains at 2.75%
BNM maintained the Overnight Policy Rate (OPR) at 2.75% during its meeting on September 3, 2026, continuing the monetary policy stance held throughout the year. The next Monetary Policy Committee (MPC) meeting is scheduled for 5 November 2026.
BNM also noted that global growth remains resilient; however, geopolitical tensions and tighter global financial conditions continue to pose risks to growth.
**Inflation Rises Slightly**
Malaysia's inflation rose to 1.9% in August 2026, up from 1.8% in July. The figure remains within a controlled range, with price trends continuing to be a key factor monitored in determining the direction of monetary policy.
Relatively controlled domestic inflation, coupled with robust economic growth, continues to underpin sentiment towards Malaysian assets.
**Bond Inflows Provide Support**
Foreign investor interest in the Malaysian bond market has also shown a significant recovery. Net inflows into the Malaysian bond market reached RM15.9 billion in August—the highest level since September 2013—with MGS and GII recording net purchases of RM10.6 billion.
Meanwhile, Kenanga Investment Bank reported foreign inflows into Malaysian government bonds totaling RM11.1 billion in August, while the 10-year MGS yield stood at 3.985% at the time.
**Ringgit Trades Mixed**
However, the ringgit traded mostly lower against major currencies at the opening.
The ringgit depreciated against the British pound to 5.4174/5.4234 from 5.4066/5.4125 and weakened against the euro to 4.5949/4.6000 from 4.5907/4.5957. Conversely, the ringgit strengthened against the Japanese yen to 2.5794/2.5824 from 2.5807/2.5837.
Against regional currencies, the ringgit weakened versus the Thai baht to 12.1439/12.1627 and the Singapore dollar to 3.1956/3.1994.
The ringgit remained unchanged against the Philippine peso at 6.50/6.51, while remaining virtually unchanged against the Indonesian rupiah at 228.1/228.5.
The ringgit is expected to continue trading within a narrow range, with market attention focused on US dollar movements, crude oil prices, and shifts in global risk appetite.
