Ringgit Gains vs Majors, Slips vs Dollar in Recurring Trend

KUALA LUMPUR: The ringgit has repeatedly opened higher against major currencies while slipping against the US dollar, a pattern that played out again on 28 July 2026 as lingering uncertainty over US-Iran negotiations and the upcoming Federal Reserve meeting kept markets on edge.

At 8am on Tuesday, the local currency was traded at 4.0850/0900 against the greenback, compared with Monday's close of 4.0835/0875. A similar dynamic was observed on 10 June 2026, when the ringgit slipped to 4.0600/0640 from 4.0580/0630 at the previous close, as markets braced for the US Consumer Price Index report.

Contents

01

Fed Rate Expectations Drive Dollar Strength

02

Gains Against Major Currencies

03

Mixed Regional Performance

04

Geopolitics Adds to Uncertainty

Fed Rate Expectations Drive Dollar Strength

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid has consistently pointed to US interest rate expectations as the key driver behind the dollar's resilience. Ahead of the FOMC meeting on 28 to 29 July 2026, he said there is a strong likelihood that US rates will be raised, which would further strengthen the dollar.

“The ringgit-US dollar pair is expected to continue moving within a narrow range today,” he told Bernama. In June, he had similarly noted that bond traders were increasingly hopeful the Fed would raise rates by 25 basis points, based on strong jobs data and elevated inflation expectations.

Gains Against Major Currencies

Despite dollar headwinds, the ringgit has consistently outperformed against other major currencies. On 28 July, it strengthened against the Japanese yen to 2.4940/4973 from 2.4969/4994, firmed against the euro to 4.6438/6495 from 4.6536/6581, and rose against the British pound to 5.4281/4348 from 5.4433/4486.

In the earlier June session, the ringgit had similarly gained against the yen to 2.5312/5338, the pound to 5.4286/4340, and the euro to 4.6832/6878.

Mixed Regional Performance

Against regional currencies, the ringgit posted a largely positive but mixed performance. On 28 July, it strengthened against the Singapore dollar to 3.1627/1669 from 3.1653/1686 and advanced against the Thai baht to 12.1379/1589 from 12.1612/1775. It slipped against the Indonesian rupiah to 226.8/227.2 from 226.7/227.0 and was unchanged against the Philippine peso at 6.62/6.63.

In June, the ringgit had risen against the Singapore dollar to 3.1536/1570 and the Thai baht to 12.3239/3432, while edging lower against the rupiah to 224.8/225.1 and holding steady against the peso at 6.59/6.60.

Geopolitics Adds to Uncertainty

Beyond monetary policy, geopolitical factors have also weighed on market sentiment. The 28 July session was clouded by the unresolved state of negotiations between the United States and Iran, adding a layer of risk aversion that supported the safe-haven dollar. The June session, by contrast, was primarily driven by anticipation of the US CPI data, which markets viewed as a potential catalyst for Fed policy action.