THE ringgit opened slightly weaker against the US dollar on Wednesday morning as investors reacted to rising geopolitical risks and uncertainty surrounding US monetary policy, while the local currency posted gains against other major currencies.
At 8.01am, the ringgit was quoted at 4.0600/4.0680 against the greenback, down from Tuesday’s closing rate of 4.0555/4.0600.
Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid told Bernama that the US dollar index (DXY) had risen 0.29% to 99.152 points amid heightened international tensions, particularly as ongoing protests in Iran continue to draw attention from the Trump administration.
“This suggests potential interference from the US is increasingly likely,” he said, highlighting the risks that could affect global financial markets.
Afzanizam also pointed to recent US macroeconomic data, noting that headline inflation for December remained at 2.7% while core inflation eased slightly to 2.6%.
“However, as the inflation rate remains well above the 2.0% target, the US Federal Reserve is likely to maintain the benchmark rate at its upcoming Federal Open Market Committee meeting later this month,” he said.
He added that this could further exacerbate tensions between the Fed and the Trump administration.
Meanwhile, the ringgit opened higher against a basket of other major currencies. It strengthened against the Japanese yen to 2.5499/2.5551 from 2.5521/2.5551 at Tuesday’s close, gained versus the euro at 4.7267/4.7360 from 4.7344/4.7396, and edged up against the British pound to 5.4506/5.4613 from 5.4676/5.4737.
Against regional Asean currencies, the ringgit showed mixed performance. It appreciated against the Singapore dollar to 3.1495/3.1562 from 3.1511/3.1549 and against the Thai baht to 12.8697/12.9008 from 12.8840/12.9036, but weakened versus the Indonesian rupiah at 240.5/241.1 from 240.3/240.6 and declined against the Philippine peso to 6.84/6.86 from 6.83/6.84.
Analysts suggest that the ringgit’s mixed performance reflects a combination of domestic stability, regional currency dynamics, and global economic uncertainty, with traders closely monitoring developments in the US and Middle East for further signals on market direction. - January 14, 2026
