Kuala Lumpur, 3 February 2026 – The ringgit opened weaker against the US dollar on Monday but strengthened against several major currencies, reflecting cautious sentiment among investors as global markets reassess the outlook for US interest rates and near-term monetary policy direction.
At the opening, the local currency slipped marginally against the greenback, tracking sustained demand for the US dollar amid lingering uncertainty over the timing and pace of potential interest rate cuts by the US Federal Reserve. Market participants remain focused on upcoming US economic data, particularly inflation and labour market indicators, which could shape expectations on monetary easing later this year.
Despite the softer tone versus the US dollar, the ringgit gained ground against other major currencies, including the Japanese yen, British pound and the euro. This relative strength was supported by improved risk sentiment across parts of Asia, as well as stabilising regional macroeconomic indicators that have helped underpin emerging market currencies.
Currency dealers noted that the ringgit’s movement continues to be driven largely by external factors rather than domestic fundamentals. While Malaysia’s economic outlook remains stable, short-term currency performance is still closely tied to global capital flows and shifts in US dollar strength.
The greenback’s resilience has been underpinned by its safe-haven appeal, especially as investors remain cautious about geopolitical risks and uneven global growth momentum. In contrast, the yen continued to face pressure amid Japan’s accommodative monetary stance, while the pound and euro saw mixed performance following recent economic data releases in the United Kingdom and eurozone.
Looking ahead, analysts expect the ringgit to trade within a narrow range in the near term, with volatility likely to persist ahead of key US policy signals. Any clearer indication of a dovish pivot by the Federal Reserve could provide some relief for regional currencies, including the ringgit, while a prolonged higher-for-longer rate environment may continue to cap upside.
For Asian investors, the ringgit’s current performance underscores the importance of monitoring global monetary policy trends, particularly as currency movements remain a critical factor influencing cross-border investment flows and portfolio positioning.
