The ringgit finished higher against the US dollar on Monday, but the gain was thin — and it came at the cost of losses against almost every other currency Malaysian traders watch.
At 6pm, the local currency stood at 4.0540/4.0580 versus the greenback, up from Friday's close of 4.0565/4.0610, according to Free Malaysia Today. The move is small enough that anyone converting dollars this week will barely notice it, but the drivers behind it say more about where sentiment is heading than the number itself.
【What actually moved the ringgit】
Bank Muamalat Malaysia chief economist Afzanizam Rashid tied the session to two headlines out of Washington. US president Donald Trump indicated that further strikes against Iran were unnecessary, and the US midterm elections concluded last week, an outcome he said could have a significant impact on the current administration's policies.
"For now, expectations of a de-escalation of the war in Iran have been instrumental in driving market sentiment," Afzanizam told Bernama.
The ringgit spent the day in a narrow band between RM4.0510 and RM4.0590, sitting at RM4.0547 by 5.05pm — a 0.11% appreciation from Friday. Behind that sat a 0.14% decline in the US Dollar Index to 101.51, and Brent crude sliding to US$89.89 a barrel.
【Why a softer dollar lifts the ringgit】
When the dollar weakens against a broad basket of currencies, emerging-market units like the ringgit typically get pulled along — not because Malaysia's fundamentals changed overnight, but because the relative price of holding dollars fell. That is the mechanical part of the story.
Oil adds a second channel. Malaysia is a net energy exporter, so crude prices feed directly into government revenue and the trade balance. Lower Brent also tends to ease imported inflation pressure across the region, which supports local currency sentiment. Both forces were working in the same direction on Monday.
What the dollar index and oil price do not explain is the ringgit's performance elsewhere.
【The losses traders should not overlook】
Against the majors, the ringgit gave ground across the board. It eased to 2.5642/2.5669 against the Japanese yen from 2.5616/2.5646, depreciated to 4.5514/4.5559 against the euro from 4.5315/4.5365, and weakened to 5.4425/5.4479 against the British pound from 5.4304/5.4365.
Closer to home, the picture was the same. The ringgit slid to 3.1726/3.1758 against the Singapore dollar from 3.1657/3.1694, slipped to 12.1337/12.1497 against the Thai baht from 12.0898/12.1105, eased to 224.4/224.7 against the Indonesian rupiah from 224.2/224.6, and weakened to 6.44/6.45 against the Philippine peso from 6.43/6.44.
For anyone holding ringgit and paying in these currencies — a family remitting to Indonesia, a traveller heading to Singapore or Bangkok, an importer settling invoices in euros or pounds — Monday's session meant a slightly worse rate than Friday's. The dollar gain was real, but it was not a broad ringgit rally.
【Who this touches, and what to watch】
This is a currency story with a wide footprint. Malaysian importers and exporters price contracts in dollars, euros and pounds. Cross-border workers and remittance senders across the Asean corridor deal in Singapore dollars, baht, rupiah and peso daily. Retail traders holding ringgit pairs saw a session defined by dollar softness rather than domestic strength.
The mechanism to keep in mind is that a headline-driven move in the dollar index can lift the ringgit against the greenback while leaving it weaker against currencies that are themselves strengthening. That is what happened here: the ringgit rose against a falling dollar and fell against currencies that were rising faster.
Afzanizam's read is that de-escalation expectations are doing the heavy lifting for sentiment right now. That is a view about mood, not a forecast, and it rests on headlines that can reverse quickly.
For readers, the practical takeaway is about verification rather than prediction. Check rates through your bank or licensed money changer rather than social media screenshots, confirm that any platform you use is registered with regulators, and be wary of accounts impersonating official channels or asking for transfers to personal accounts. Currency moves of this size are routine; the risk that matters is usually the counterparty, not the rate.
The ringgit finished higher against the US dollar on Monday, but the gain was thin — and it came at the cost of losses against almost every other currency Malaysian traders watch.
At 6pm, the local currency stood at 4.0540/4.0580 versus the greenback, up from Friday's close of 4.0565/4.0610, according to Free Malaysia Today. The move is small enough that anyone converting dollars this week will barely notice it, but the drivers behind it say more about where sentiment is heading than the number itself.
【What actually moved the ringgit】
Bank Muamalat Malaysia chief economist Afzanizam Rashid tied the session to two headlines out of Washington. US president Donald Trump indicated that further strikes against Iran were unnecessary, and the US midterm elections concluded last week, an outcome he said could have a significant impact on the current administration's policies.
"For now, expectations of a de-escalation of the war in Iran have been instrumental in driving market sentiment," Afzanizam told Bernama.
The ringgit spent the day in a narrow band between RM4.0510 and RM4.0590, sitting at RM4.0547 by 5.05pm — a 0.11% appreciation from Friday. Behind that sat a 0.14% decline in the US Dollar Index to 101.51, and Brent crude sliding to US$89.89 a barrel.
【Why a softer dollar lifts the ringgit】
When the dollar weakens against a broad basket of currencies, emerging-market units like the ringgit typically get pulled along — not because Malaysia's fundamentals changed overnight, but because the relative price of holding dollars fell. That is the mechanical part of the story.
Oil adds a second channel. Malaysia is a net energy exporter, so crude prices feed directly into government revenue and the trade balance. Lower Brent also tends to ease imported inflation pressure across the region, which supports local currency sentiment. Both forces were working in the same direction on Monday.
What the dollar index and oil price do not explain is the ringgit's performance elsewhere.
【The losses traders should not overlook】
Against the majors, the ringgit gave ground across the board. It eased to 2.5642/2.5669 against the Japanese yen from 2.5616/2.5646, depreciated to 4.5514/4.5559 against the euro from 4.5315/4.5365, and weakened to 5.4425/5.4479 against the British pound from 5.4304/5.4365.
Closer to home, the picture was the same. The ringgit slid to 3.1726/3.1758 against the Singapore dollar from 3.1657/3.1694, slipped to 12.1337/12.1497 against the Thai baht from 12.0898/12.1105, eased to 224.4/224.7 against the Indonesian rupiah from 224.2/224.6, and weakened to 6.44/6.45 against the Philippine peso from 6.43/6.44.
For anyone holding ringgit and paying in these currencies — a family remitting to Indonesia, a traveller heading to Singapore or Bangkok, an importer settling invoices in euros or pounds — Monday's session meant a slightly worse rate than Friday's. The dollar gain was real, but it was not a broad ringgit rally.
【Who this touches, and what to watch】
This is a currency story with a wide footprint. Malaysian importers and exporters price contracts in dollars, euros and pounds. Cross-border workers and remittance senders across the Asean corridor deal in Singapore dollars, baht, rupiah and peso daily. Retail traders holding ringgit pairs saw a session defined by dollar softness rather than domestic strength.
The mechanism to keep in mind is that a headline-driven move in the dollar index can lift the ringgit against the greenback while leaving it weaker against currencies that are themselves strengthening. That is what happened here: the ringgit rose against a falling dollar and fell against currencies that were rising faster.
Afzanizam's read is that de-escalation expectations are doing the heavy lifting for sentiment right now. That is a view about mood, not a forecast, and it rests on headlines that can reverse quickly.
For readers, the practical takeaway is about verification rather than prediction. Check rates through your bank or licensed money changer rather than social media screenshots, confirm that any platform you use is registered with regulators, and be wary of accounts impersonating official channels or asking for transfers to personal accounts. Currency moves of this size are routine; the risk that matters is usually the counterparty, not the rate.
