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THE ringgit surged to its strongest level in eight years against the United States dollar at the opening of trade, as investors responded to resilient domestic economic indicators and a softening outlook for the American economy amid fresh uncertainty over Washington’s tariff regime.
At 8am, the local currency rose to 3.8835/9065 against the greenback, strengthening from 3.8995/9055 at Friday’s close.
The advance comes as markets reassess the trajectory of US trade policy following a ruling by the Supreme Court of the United States that President Donald Trump lacks constitutional authority under the International Emergency Economic Powers Act to impose sweeping global tariffs.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the currency’s strength was also supported by domestic data and a more cautious assessment of US growth prospects.
He noted that fourth-quarter 2025 gross domestic product expanded by 1.4 per cent, while inflation remained above the two per cent target, accompanied by softer consumer and business sentiment.
Meanwhile, the question of US import tariffs has returned to the forefront of traders’ considerations.
"President Trump remains adamant about imposing tariffs using different laws; at the same time, some trading partners have indicated they will halt the ratification process of trade deals with the US.
"In some sense, the separation of powers still exists in the US; that should provide some comfort that there is a check-and-balance mechanism to ensure fair and equitable economic conditions,” he told Bernama.
Over the weekend, Trump said he would raise the global tariff rate to 15 per cent from 10 per cent, following the court’s decision to strike down much of his earlier trade measures, underscoring the fluidity of the policy landscape.
Despite its gains against the dollar, the ringgit opened lower against a basket of major currencies. It weakened against the Japanese yen to 2.5162/5314 from 2.5092/5132 at Friday’s close, edged down against the pound sterling to 5.2540/2851 from 5.2511/2591, and slipped versus the euro to 4.5946/6218 from 4.5882/5952 previously.
Against regional peers, however, the local note was mostly firmer. It strengthened against the Singapore dollar to 3.0712/0899 from 3.0724/0774, advanced against the Indonesian rupiah to 229.9/231.4 from 230.8/231.3, and improved against the Philippine peso to 6.68/6.72 from 6.73/6.75. The ringgit was marginally weaker against the Thai baht at 12.5201/6024 compared with 12.4952/5216 previously.
Currency markets now appear poised between competing forces: Malaysia’s comparatively stable macroeconomic footing and the evolving trajectory of US trade policy, where judicial restraint and executive resolve are set on a renewed collision course. - February 23, 2026