Ringgit opens higher against US dollar on improved local sentiment and BNM outlook

Published July 29, 2026 at 3:09 AM UTC

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Key Points

Ringgit strengthens to 4.0505/0615 against US dollar at 8 am.
BNM Governor Abdul Rasheed Ghaffour projects potential appreciation to RM4 by year-end.
Expectations of US Federal Reserve policy shift bolster investor confidence.
Easing geopolitical tensions, including US-Iran peace agreement, improve market sentiment.

Background History

Bank Negara Malaysia (BNM) is the central bank of Malaysia, responsible for formulating and overseeing the implementation of monetary policy. Governor Datuk Seri Abdul Rasheed Ghaffour has been serving as the head of BNM, providing guidance on the country's monetary policy and economic outlook. The Strait of Hormuz is a critical waterway for global oil shipments, and its security is vital for international trade and energy markets. The US-Iran peace agreement aims to ease tensions in the region, potentially leading to the reopening of this strategic passage.

The Malaysian ringgit opened higher against the US dollar today, reflecting improved local market sentiment and an optimistic outlook from Bank Negara Malaysia (BNM). At 8 am, the ringgit was quoted at 4.0505/0615 against the greenback, up from Thursday's close of 4.0650/0690. This appreciation is attributed to positive remarks from BNM Governor Datuk Seri Abdul Rasheed Ghaffour, who noted that the ringgit has the potential to appreciate to RM4 against the greenback by year-end. Additionally, expectations of a shift in US Federal Reserve policy have bolstered investor confidence in the Malaysian currency. The ringgit's performance is also influenced by easing geopolitical tensions, particularly the potential reopening of the Strait of Hormuz following a peace agreement between the US and Iran. These developments have contributed to a more favorable risk sentiment in the market.