Kuala Lumpur — The Malaysian ringgit strengthened against a range of major currencies yesterday, buoyed by positive economic indicators, despite a slight decline against the US dollar.

By 6 p.m. local time, the ringgit slipped to 4.0805/0845 against the dollar, compared to last Friday’s close of 4.0795/0835. Earlier in the day, Malaysia’s Department of Statistics reported that the country’s inflation rate eased to 1.8 percent in September 2026 from 1.9 percent in August. Additionally, total trade value jumped 53.7 percent year-on-year to RM396.5 billion, up from RM258.1 billion during the same period last year, reflecting robust export and import activity.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid highlighted the ringgit’s resilience amid external pressures. He noted that global market movements had posed challenges, especially as MSCI, an influential global index provider, announced it was considering downgrading Indonesia’s stock market classification from “emerging market” to “standalone market.”

“The potential two-step downgrade has contributed to a depreciation of the Indonesian rupiah to levels exceeding 18,000 rupiah per US dollar,” Mohd Afzanizam said. This development has shifted investment flows in the region, indirectly supporting the ringgit’s performance.

The ringgit’s strength against other major currencies amid regional currency volatility underscores investor confidence in Malaysia's economic fundamentals and its broader trade performance. However, fluctuations against the US dollar reflect ongoing global currency market dynamics.

Malaysia’s easing inflation and surging trade figures point to stable domestic demand and robust international trade links, factors that have contributed to the local currency’s overall favorable position in recent trading sessions.