KUALA LUMPUR, May 20, 2026, 18:12 MYT
Ringgit slips against dollar as US jobs data, West Asia tensions steer demand
The ringgit started a bit weaker versus the dollar on Wednesday, hovering close to RM3.97. Investors stuck with the dollar after stronger US labour figures and ongoing conflict in West Asia. The ringgit traded at 3.9755/9855 at 8 a.m., from 3.9745/9785 late Tuesday.
Fresh U.S. jobs data is making it tougher for traders to wager on easier Fed policy. ADP Research said private employers added about 42,250 jobs a week in the four weeks through May 2, up from 33,000 per week before. That’s a preliminary weekly figure for private-sector hiring.
Dollar up again on Iran fears. The U.S. Dollar Index hit 99.47, its highest since April 7, as traders bet the Fed could hike rates to fight energy-driven inflation.
Ringgit slipped a bit against the dollar, with the market still on the defensive side. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama the U.S. Dollar Index “appears to be gaining strength” after labour numbers surprised on the upside. The Vibes
Ringgit gains on pound, euro, but slips on yen; mixed vs Asia peers.
The local currency strengthened versus the pound at 5.3248/3382 and the euro at 4.6140/6256. It dropped to 2.4995/5060 against the yen. Against other Asian currencies, the ringgit improved on the Thai baht and Singapore dollar but fell against the Indonesian rupiah.
Ringgit steadied near 3.97 after a rough Tuesday. It opened a bit firmer at 3.9705/9760 per dollar as investors eyed U.S.-Iran talks, but oil markets looked tense early. West Texas Intermediate was shown at $108.66 a barrel, Brent at $112.10 in the local report.
Oil slipped Wednesday but stayed high enough to keep pressure on Asian currencies. Brent was last at $109.76 and U.S. crude at $102.79, Reuters said. Emril Jamil, a research analyst at LSEG, said supply could remain tight, noting production might not hit pre-war levels “immediately” even if there’s a deal. Reuters
Analysts in currency markets are keeping an eye on yields and oil. Derek Halpenny at MUFG said there is “scope for yields to move further higher” as crude risks continue to rise. Higher U.S. yields usually help the dollar and weigh on emerging-market currencies. Reuters
Malaysia’s domestic setting is more stable than external factors for now. Bank Negara Malaysia kept its overnight policy rate at 2.75% on May 7, holding for a fifth meeting. The central bank said policy is still aiming at price stability and sustainable growth. It also flagged that the Middle East conflict could add to domestic cost pressures.
The trade is volatile. If the U.S. and Iran reach a clear deal, crude drops, and inflation worries fade, the dollar could weaken, and demand for the ringgit may improve. But a new crisis in the Strait of Hormuz or more gains in U.S. yields could lift the dollar again and hurt the ringgit. Reuters reported Trump stopped a planned attack after Iran offered a peace deal, but told the military to stay ready if talks failed.
Traders are eyeing RM3.97 as the key level for now. Afzanizam said the dollar still looks supported given the U.S.-Iran stalemate and worries about inflation, and he expects the ringgit’s sideways trade to stick around.
