Business

Ringgit strengthens against US dollar on positive economic sentiment

Currency gains reflect Malaysia’s growth prospects and weaker greenback, though mixed performance seen against regional peers

Updated 5 months ago · Published on 26 Feb 2026 9:18AM

Ringgit strengthens against US dollar on positive economic sentiment
Mohd Afzanizam says the ringgit is likely to remain well supported in the near term, given the softer US dollar outlook and Malaysia’s positive economic prospects - February 26, 2026

THE ringgit opened firmer against the US dollar on Thursday, buoyed by positive economic prospects and a softer greenback, although its performance against other major and regional currencies remained mixed.

At 8am, the local currency traded at 3.8850/8960 per US dollar, strengthening from Wednesday’s close of 3.8900/8955.

Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the government is reviewing this year’s gross domestic product growth forecast, currently projected at 4.0 to 4.5 per cent.

“Given last year’s performance, the revision is likely to be upward. That in itself signals a positive outlook,” he told Bernama.

Mohd Afzanizam added that Malaysia’s monetary policy is expected to remain accommodative, with the central bank widely anticipated to keep interest rates unchanged.

The US dollar index eased 0.17 per cent to 97.675, reflecting continued softness in the greenback. According to Dr Mohd Afzanizam, the dollar-ringgit pair had hovered near its immediate support level of RM3.8722 on Wednesday before stabilising around RM3.8855 in the afternoon session.

“The ringgit is likely to remain well supported in the near term, given the softer US dollar outlook and Malaysia’s positive economic prospects,” he said.

Despite gains against the US dollar, the ringgit opened lower against other major currencies. It eased against the Japanese yen to 2.4878/4950 from 2.4848/4885, slipped versus the British pound to 5.2669/2818 from 5.2585/2659, and weakened against the euro to 4.5901/6031 from 4.5855/5920.

The local currency also showed a mixed performance against its ASEAN peers. It strengthened against the Thai baht to 12.4988/5418 from 12.5121/5374, rose against the Indonesian rupiah to 231.2/232.0 from 231.5/231.9, and edged higher versus the Philippine peso to 6.75/6.78 from 6.76/6.78. However, it slipped against the Singapore dollar to 3.0760/0850 from 3.0736/0782.

Market watchers attributed the ringgit’s firming against the US dollar to both Malaysia’s improving economic outlook and the continued softness in the greenback. - February 26, 2026

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