KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Monday, extending its recent upward trend as improving sentiment towards the Malaysian economy and easing global trade tensions continued to support the local currency.
At 8:32 a.m., the ringgit strengthened to between 4.0930 and 4.1040 against the greenback, compared with last Friday’s close of 4.0945/4.1005. This marks levels last seen on April 27, 2021, when the ringgit closed at 4.0960 against the US dollar.
However, according to Free Malaysia Today, citing Bernama, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the local currency is likely to trade within a narrow range today after its strong performance last week.
He noted that the recent US interest rate cut by the US Federal Reserve was not a unanimous decision, with two policymakers opting to keep rates unchanged due to lingering inflation concerns.
On the domestic front, data released by the Department of Statistics Malaysia last Friday showed that the Industrial Production Index expanded by 6.0% year-on-year in October 2025. The growth was driven largely by a 6.5% increase in the manufacturing sector.
In early trade, the ringgit strengthened against a basket of major currencies. It rose against the British pound to 5.4670/5.4817 from 5.4789/5.4869 last Friday, edged higher against the Japanese yen to 2.6246/2.6318 from 2.6264/2.6304 and gained against the euro to 4.8007/4.8136 from 4.8037/4.8107.
Ringgit firms against Singapore dollar, with implications for cross-border travel
The ringgit also strengthened slightly against the Singapore dollar, trading at 3.1677/3.1765 compared with 3.1701/3.1750 at last Friday’s close.
While the move appears modest, it continues a broader trend of a firmer ringgit in recent months, which reduces the purchasing power of Singapore dollars when converted into Malaysian ringgit.
For Singaporeans, this means everyday spending across the Causeway, from meals and shopping to petrol and groceries, becomes less attractive compared with periods when the ringgit was weaker.
This comes amid earlier reports that visitor numbers from Singapore to Johor Bahru were lower this year compared with previous periods. A stronger ringgit relative to the Singapore dollar is likely one of several contributing factors, as the narrowing exchange rate advantage reduces the cost savings that once drove frequent cross-border trips.
Against other regional currencies, the ringgit traded mixed. It strengthened slightly versus the Indonesian rupiah to 245.8/246.6 from 245.9/246.4, but weakened against the Thai baht to 12.9624/13.0050 from 12.9589/12.9845. It was largely flat against the Philippine peso at 6.93/6.95.
