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THE Malaysian ringgit recorded a marginal gain against the US dollar and other key currencies on Wednesday morning, reflecting modest buying interest as market participants adopted a cautious stance amid ongoing global economic concerns.
At 8 am, the local currency was quoted at 4.0525/0575 against the greenback, slightly firmer than Tuesday’s closing rate of 4.0530/0580.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said persistent risk-off sentiment continued to weigh on financial markets worldwide, driven by lingering worries over trade tariffs and geopolitical tensions.
“The US Dollar Index (DXY) fell 0.83 per cent to 98.570 points, which could lend some support to the ringgit,” he said.
“As such, the ringgit is expected to track a similar trend, with market sentiment remaining cautious despite positive domestic economic data. Expect the ringgit to trade within a tight range of around RM4.05 to RM4.06 today.
Meanwhile, Bank Negara Malaysia’s Monetary Policy Committee decision tomorrow should provide greater clarity on the economic outlook.”
The ringgit strengthened against a basket of major currencies, appreciating against the Japanese yen to 2.5615/5648 from Tuesday’s 2.5696/5729. It edged up versus the British pound to 5.4462/4529 from 5.4618/4686, and rose slightly against the euro to 4.7516/7574 from 4.7530/7588.
Regional performance showed mixed trends. The local currency firmed against the Singapore dollar to 3.1557/1598 from 3.1602/1646 and strengthened versus the Indonesian rupiah to 238.7/239.4 from 239.0/239.4.
However, it slipped marginally against the Thai baht to 13.0566/0824 from 13.0397/0629 and remained unchanged against the Philippine peso at 6.81/6.83.
Analysts noted that while the ringgit has gained some support from a weaker US dollar, volatility in global financial markets and uncertainty surrounding upcoming policy decisions by Bank Negara Malaysia are likely to keep trading cautious in the near term. - January 21, 2026