Ringgit opens higher as inflation eases, OPR normalisation in focus

The ringgit opened higher against the US dollar on Tuesday despite a stronger greenback, supported by easing domestic inflation and expectations of a possible normalisation of the Overnight Policy Rate (OPR).

At 8am, the ringgit strengthened to 4.0780/4.0850 against the US dollar, compared with yesterday’s close of 4.0805/4.0845.

The department of statistics Malaysia (DOSM) reported that inflation eased to 1.8% in September 2026, from 1.9% in August.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid expected the ringgit to trade within a range of RM4.07 to RM4.08 against the US dollar today.

He said investors were also monitoring geopolitical risks in the Middle East after Iran’s navy reported an attack by the US military on the Konarak naval base.

“We are entering the blackout period, during which US Federal Reserve officials will not be commenting publicly ahead of next week’s Federal Open Market Committee (FOMC) meeting,” he told Bernama.

The US Dollar Index (DXY), which measures the greenback against a basket of major currencies, rose 0.15 per cent to 101.989 points, he added.

At the opening, the ringgit traded mostly higher against major currencies. It strengthened against the Japanese yen to 2.5724/2.5770 from 2.5790/2.5817 at yesterday’s close and rose against the British pound to 5.4274/5.4367 from 5.4369/5.4422.

However, it edged lower against the euro to 4.5731/4.5809 from 4.5726/4.5771 previously.

The ringgit also strengthened against most of its Asean peers.

It edged up against the Indonesian rupiah to 225.9/226.4 from 226.0/226.4 yesterday and against the Philippine peso to 6.46/6.48 from 6.47/6.48.

The local currency also rose against the Singapore dollar to 3.1862/3.1919 from 3.1886/3.1920 at the previous close and strengthened against the Thai baht to 12.1373/12.1661 from 12.1451/12.1613.