Ringgit Slips vs US Dollar, Gains on All Other Majors

The Malaysian ringgit weakened marginally against the US dollar on Tuesday but posted gains against every other major and regional currency, as unexpectedly strong American manufacturing data kept the greenback well supported.

At 6pm on August 4, 2026, the local currency eased to 4.0945/0985 against the US dollar from Monday's close of 4.0935/0975, a dip of less than 0.03%. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted the ringgit was mostly flat versus the greenback and moved within a narrow range throughout the day.

Contents

01

What Drove the US Dollar Higher

02

Gains Against Major Currencies

03

Regional Performance

04

What to Watch

What Drove the US Dollar Higher

The US Dollar Index (DXY) climbed back above the 100-point mark after the US Institute for Supply Management's Manufacturing Index for July came in stronger than markets had anticipated. The positive data reinforced confidence in the resilience of the American economy.

Dr Mohd Afzanizam told Bernama that the US dollar is likely to remain well supported, as upbeat economic figures from the United States continue to bolster the currency.

Gains Against Major Currencies

Despite the slight softening against the greenback, the ringgit traded higher across the board against other major currencies. It appreciated against the Japanese yen to 2.5929/5956 from 2.6062/6089 at Monday's close, strengthened versus the euro to 4.7120/7166 from 4.7165/7211, and edged up against the British pound to 5.5034/5088 from 5.5053/5107.

Regional Performance

The ringgit also outperformed its ASEAN peers. It strengthened against the Thai baht to 12.2487/2654 from 12.2663/2827, rose against the Indonesian rupiah to 227.1/227.4 from 227.4/227.7, and appreciated versus the Philippine peso to 6.69/6.70 from 6.72/6.73.

The local currency also advanced against the Singapore dollar, closing at 3.1899/1932 compared with 3.1911/1944 the previous day.

What to Watch

With the DXY back above 100 and US economic data surprising to the upside, the near-term direction of the ringgit against the dollar will likely hinge on incoming data from both economies. For now, the ringgit's broad strength against non-dollar currencies suggests underlying demand for the Malaysian currency remains intact.