Ringgit Firm With Macroeconomic Fundamentals Against Dollar

The US dollar appreciated against major currencies in October 2026, with the US Dollar Index (DXY) increasing by 0.4% month-on-month to 101.88, compared to 101.45 at the end of September. The index initially strengthened to above 102.0 early in the month, driven by elevated US Treasury yields following a sharp bond market sell-off that pushed the 10-year yield to a 24-year high of 5.342%.

Ringgit

Despite this external pressure, the ringgit traded relatively steadily between RM4.05 and RM4.09 against the greenback throughout the month, hovering around RM4.08 for much of October. Ultimately, the local currency recorded a marginal appreciation of 0.5% month-on-month, closing at RM4.058 compared to RM4.0808 recorded at the end of October 2025. On average, the ringgit softened slightly by 0.3% month-on-month to RM4.082, reflecting brief pressure during the first half of the month amid US dollar strength and shifting expectations regarding Federal Reserve monetary policy.

“We maintain our forecast for the ringgit to average RM4.01 in 2026 and strengthen towards RM4.03 by year-end, although near-term volatility could persist amid the Fed’s hawkish monetary policy stance,” noted analysts from MBSB.

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