Ringgit held strong on a near seven-week high vs dollar

The Malaysian ringgit (MYR) held strong through the weekend, holding near a seven-week high after extending a 10-day winning streak at Friday’s market close. Because foreign exchange markets are generally closed over the weekend, the currency maintained its closing momentum from Friday, October 30. [1, 2]

Ringgit Performance

Against the US Dollar: The ringgit extended its positive momentum as global traders reassessed the outlook for US interest rates following the Federal Reserve’s decision to leave its benchmark rate steady. This shifts focus heavily onto Bank Negara Malaysia’s (BNM) upcoming Overnight Policy Rate (OPR) decision on November 5.

Against Regional Peers: While it slipped slightly against the Singapore dollar towards the weekend to hover around RM3.1753/1791, its overall multi-month strength has significantly impacted cross-border retail, cooling down heavy Singaporean weekend shopping traffic in areas like Johor Bahru because everyday purchases have become proportionally more expensive for foreigners.

Against Other Major Currencies: The ringgit closed slightly softer on Friday against the British pound (5.4461/4522), the euro (4.5413/4564), and the Japanese yen (2.5782/5812) as markets consolidated positions ahead of a volatile week of global macro events.

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