THE Malaysian ringgit opened slightly stronger against the US dollar on Wednesday, as markets positioned themselves ahead of a policy decision by Bank Negara Malaysia, with attention focused on inflation data and external risks.
At 8am, the local currency traded at 3.9530/9635 against the greenback, improving from Tuesday’s close of 3.9600/9635.
Economists said the upcoming Monetary Policy Committee meeting would be pivotal, not only for its decision on the Overnight Policy Rate but also for signals on the broader economic outlook.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said markets would be scrutinising the central bank’s accompanying statement for clues on policy direction.
“The outlook for the second quarter remains intact, although markets are closely watching the impact of escalating tensions in West Asia,” he said.
Rising geopolitical uncertainty has begun to filter into domestic price pressures.
According to research by the bank, Malaysia’s Consumer Price Index climbed 1.7 per cent year-on-year to 136.4 points in March 2026, up from 1.4 per cent in February, reflecting early effects linked to developments in Iran.
Afzanizam noted that lingering concerns over the West Asia crisis continued to dampen broader market sentiment.
“Yesterday, the ringgit weakened 0.15 per cent to RM3.9618 against the US dollar. In light of the latest developments, it is likely to appreciate, although gains are expected to be measured,” he said.
In early trading, the ringgit showed mixed performance against major currencies. It strengthened against the Japanese yen but weakened against both the euro and the British pound.
Against regional peers, the currency was largely softer. It posted a modest gain versus the Indonesian rupiah but slipped against the Singapore dollar, Thai baht and Philippine peso, reflecting cautious sentiment across Asian markets ahead of the central bank’s decision. - May 6, 2026
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