Ringgit opens higher vs US$ ahead of state poll
The Malaysian ringgit opened higher against the US dollar due to positive domestic sentiment ahead of the Negeri Sembilan state election. However, gains remain capped by investor caution regarding the upcoming US Federal Open Market Committee meeting.
Why it matters
Currency fluctuations impact trade and inflation, making this a key indicator for investors monitoring the stability of the Malaysian economy.
KUALA LUMPUR: The ringgit opened higher against the US dollar on Monday, supported by positive domestic sentiment ahead of the Negeri Sembilan state election, although caution ahead of the US Federal Open Market Committee (FOMC) meeting capped gains.
At 8 am, the local currency strengthened to 4.0830/0930 against the greenback from 4.0885/0935 at Friday's close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants would be watching whether the Negeri Sembilan state election influences national politics.
Early voting will take place on Tuesday (July 28), with polling scheduled for Aug 1, 2026.
Mohd Afzanizam said while the ringgit could draw support from positive domestic developments, external factors continued to dominate market sentiment.
"We expect market sentiment to remain cautious ahead of the FOMC meeting on July 28-29. The likelihood of a rate hike has increased, supporting the US dollar.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in