KUALA LUMPUR, 19 February 2026 – The Malaysian ringgit opened slightly lower against the US dollar on Thursday, pressured by a stronger greenback following the release of the Federal Open Market Committee (FOMC) minutes, which indicated ongoing support for tighter US interest rate policy.
At 8 am local time, the ringgit was quoted around RM3.8965/3.9160 against the US dollar, slightly weaker than the RM3.8945/3.9055 close on Monday, as demand for the dollar improved amid expectations of sustained US rate strength.
US Monetary Signals Boost Dollar, Pressure Emerging Currencies
Analysts linked the ringgit’s modest decline to the stronger performance of the US dollar, which received fresh support from FOMC minutes showing Federal Reserve officials emphasised caution about future rate cuts, keeping US monetary policy comparatively tighter. This dynamic typically bolsters the greenback and can weigh on emerging market currencies like the ringgit.
The ringgit’s performance follows recent patterns where external factors, particularly US monetary policy signals and FOMC developments, have influenced local currency moves, with the dollar’s strength feeding through to Asian FX markets.
Broader FX Context for Malaysia
While the ringgit has strengthened significantly over the past year due to Malaysia’s solid economic fundamentals, including robust export performance and stable domestic demand, external headwinds such as a firm dollar can intermittently dampen gains.
Investors and currency traders will monitor upcoming US economic data and Fed communications for further cues on interest rates, as these remain key drivers for the ringgit’s near-term trajectory.
