The ringgit opened higher against the US dollar on Tuesday as easing domestic inflation and expectations surrounding Bank Negara Malaysia’s (BNM) monetary policy supported the local currency.
At 8am on October 20, the ringgit was quoted at RM4.0780/4.0850 against the US dollar, compared with Monday’s closing rate of RM4.0805/4.0845, according to Bernama.
Malaysia’s inflation rate eased to 1.8% in September from 1.9% in August, according to the Department of Statistics Malaysia. The latest figures come as markets monitor expectations of a possible normalisation of BNM’s Overnight Policy Rate (OPR).
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expected the ringgit to trade between RM4.07 and RM4.08 against the US dollar on Tuesday.
Investors were also monitoring geopolitical developments in West Asia following reports of a US military attack on Iran’s Konarak naval base. Meanwhile, attention was turning to next week’s Federal Open Market Committee meeting, ahead of which US Federal Reserve officials had entered a period when they would not comment publicly.
Dr Mohd Afzanizam said the US Dollar Index had risen 0.15% to 101.989 points, adding to the factors influencing currency movements.
Against other major currencies, the ringgit strengthened against the Japanese yen and British pound but edged lower against the euro.
The ringgit was quoted at RM2.5724/2.5770 for 100 Japanese yen, compared with RM2.5790/2.5817 at Monday’s close. Against the pound, it stood at RM5.4274/5.4367, down from RM5.4369/5.4422 previously.
However, the ringgit was slightly weaker against the euro, which was quoted at RM4.5731/4.5809 compared with RM4.5726/4.5771 at the previous close.
Among regional currencies, the ringgit strengthened against the Singapore dollar, Thai baht, Philippine peso and Indonesian rupiah. It was quoted at RM3.1862/3.1919 against the Singapore dollar, while 100 Thai baht stood at RM12.1373/12.1661.
The ringgit was also quoted at RM6.46/6.48 for 100 Philippine pesos and RM225.90/226.40 for 100 Indonesian rupiah.
Source: Bernama, “Ringgit Opens Higher As Inflation Eases, OPR Normalisation In Focus”, published on October 20, 2026. All figures refer to the 8am opening rates and are compared with Monday’s closing rates.
