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THE ringgit opened marginally weaker against the United States dollar on Thursday, tracking renewed strength in the greenback after minutes from the Federal Open Market Committee signalled the possibility of further interest rate tightening.
At 8am, the local currency slipped to 3.8965/9160 against the US dollar, compared with 3.8945/9055 at Monday’s close.
Bank Muamalat Malaysia Berhad Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index had climbed 0.57 per cent to 97.712 points following the release of the latest FOMC minutes.
"This situation suggested that raising the interest rate could be a possible outcome should the inflation remain above target level," he said.
According to Mohd Afzanizam, several participants in the meeting preferred a two-sided description of the committee’s decision, an indication that further rate increases remain under consideration should inflationary pressures persist.
Despite the firmer dollar, he expects the ringgit to trade within a narrow band of RM3.89 to RM3.91 during the day, supported by what he described as strong domestic economic data.
In early trade, the ringgit performed more favourably against a basket of major currencies. It strengthened against the Japanese yen to 2.5191/5318 from 2.5356/5430 at Monday’s close, appreciated against the euro to 4.5936/6166 from 4.6204/6335, and advanced against the British pound to 5.2583/2846 from 5.3137/3287.
The local note also traded mostly higher against regional peers. It improved versus the Singapore dollar to 3.0746/0905 from 3.0860/0949, gained against the Thai baht to 12.4640/5364 from 12.5205/5619, and edged up against the Indonesian rupiah to 230.7/232.0 from 231.4/232.2. However, it slipped slightly against the Philippine peso to 6.73/6.77 from 6.71/6.74 previously. - February 19, 2026