Ringgit Up Against The Pound, Euro And Yen But Down Against The Dollar. Here’s What That Means For You

The ringgit opened firmer against most major currencies on Friday morning, even as it slipped slightly against the US dollar. The catch? Renewed tensions in the US-Iran conflict have dimmed hopes for a peace deal, keeping investors cautious.

According to The Star and Bernama, At 8am today, the local currency traded at 3.9100/9200 against the greenback, compared with Thursday’s close of 3.9070/9115. The US Dollar Index, meanwhile, has been hovering flat at around 98 points as markets wait for the latest US jobs data.

It’s the kind of update that sounds dry on paper. But the ringgit’s quiet strength elsewhere is genuinely useful news for Malaysians spending money abroad, or buying things online from overseas merchants.

A small but meaningful win

According to Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid, the ringgit closed 0.42% higher against the US dollar yesterday at RM3.9093, after Bank Negara Malaysia (BNM) decided to keep the overnight policy rate (OPR) unchanged at 2.75%.

In other words, BNM is essentially saying it has confidence in Malaysia’s economic fundamentals, and that vote of confidence tends to be ringgit-positive. Mohd Afzanizam expects the ringgit to hover around RM3.90 against the greenback today.

The bigger gains are against the European and ASEAN currencies. The ringgit strengthened against the euro (4.5872/5989, from 4.5978/6031), the British pound (5.3004/3140, from 5.3202/3263) and the Japanese yen (2.4925/4990, from 2.4982/5013). It also rose against the Singapore dollar (3.0807/0890, from 3.0861/0901) and the Thai baht (12.1098/1479, from 12.1486/1687), while staying largely flat against the Indonesian rupiah and Philippine peso.

What this means for your wallet

For ordinary Malaysians, the headline takeaway is straightforward. It’s a slightly better day to spend in foreign currency than yesterday.

That includes:

• Travel – trips to Europe, the UK, Japan, Singapore and Thailand all cost a little less in ringgit terms.
• Online shopping – anything you buy in pounds, euros, yen or Singapore dollars converts more favourably.
• Foreign subscriptions – services billed in non-USD currencies (some streaming, gaming and software platforms) cost a touch less to maintain.

Unfortunately, against the US dollar, you’re still paying slightly more, which matters since most major subscriptions (Netflix, Spotify, ChatGPT, Steam) and US-based online shopping are dollar-denominated.

How to actually take advantage of it

A stronger ringgit only puts more money in your pocket if you’re set up to capture the gains. The single biggest leak for most Malaysians spending in foreign currency is the credit card, specifically, the foreign transaction fee, the FX markup, and how favourable (or unfavourable) the conversion rate is.

A typical Malaysian credit card charges a 1% to 3% foreign transaction fee on top of the bank’s own conversion rate. On a RM5,000 holiday spend, that’s RM50 to RM150 evaporating quietly into fees, wiping out a lot of the ringgit’s recent gains.

If you travel often, shop online from foreign sites, or pay for overseas subscriptions, it’s worth checking whether your current credit card is the right fit. Some cards waive foreign transaction fees entirely. Others offer cashback or reward points specifically on overseas spend, effectively giving you back what you’d otherwise lose to FX charges.