On Thursday, May 14, the Malaysian Ringgit remained resilient. Yahoo Finance historical data showed USD/MYR at around 3.9280 on May 14, stronger than the previous 3.95 area. The US dollar was supported by hotter US inflation data, rising Treasury yields, and safe-haven demand linked to Middle East uncertainty.
Market Overview
Global FX markets traded under a stronger dollar, unresolved geopolitical risk, and elevated oil prices backdrop. Reuters reported that the dollar was lifted by higher US Treasury yields and market expectations that the Federal Reserve could still raise rates this year, while the US-Iran impasse continued to support safe-haven flows.
In commodities, Brent crude rose to around USD 105.89 per barrel, while WTI climbed to around USD 101.34 per barrel. Elevated oil prices have a mixed impact on the Ringgit: they support Malaysia's energy-related revenue, but may also raise global inflation and strengthen US rate expectations.
Local Market Performance
USD/MYR stayed near the 3.93 level. Bank Negara Malaysia reported that international reserves stood at USD 129.7 billion as of April 30, 2026, sufficient to finance 4.7 months of goods and services imports and equivalent to 0.9 times short-term external debt.
On trade, Malaysia's March 2026 exports rose 8.3% year-on-year to RM148.75 billion, imports increased 10.4% to RM124.20 billion, and the trade surplus reached RM24.55 billion, extending the surplus streak to 71 consecutive months.
Sector and Key Highlights
USD/MYR
USD/MYR traded around 3.93. Although the US dollar was supported by inflation and safe-haven demand, the Ringgit avoided major weakness thanks to Malaysia's trade surplus, stronger reserves, and resilient domestic fundamentals.
SGD/MYR
SGD/MYR was quoted around 3.0888 on May 14. The Singapore dollar remains supported by MAS policy after the central bank slightly increased the rate of appreciation of the S$NEER policy band in April to counter imported inflation from higher energy prices.
Commodity Linkages
Oil remains a key variable for the Ringgit. High oil prices support Malaysia's energy-related export income, but if they further lift global inflation and Fed rate-hike expectations, dollar strength could limit further MYR appreciation.
Currencies to Watch
| Currency Pair | Current Level (Est.) | Reason |
|---|---|---|
| USD/MYR | Around 3.93 | Dollar supported by inflation, rate expectations, and safe-haven flows, while MYR fundamentals remain solid. |
| SGD/MYR | Around 3.09 | MAS policy support for SGD versus Malaysia's trade-driven MYR resilience. |
Market Drivers
- Hot US inflation: Stronger producer-price data reduced rate-cut expectations and supported the dollar.
- Geopolitical risk: Middle East and Iran-related uncertainty continued to support safe-haven demand and oil prices.
- Malaysia trade surplus: The March trade surplus of RM24.55 billion supported FX inflows into Malaysia.
- Higher reserves: BNM reserves rose to USD 129.7 billion, reinforcing confidence in currency stability.
- Elevated oil prices: Oil provides income support but also raises imported inflation risk.
Outlook
In the near term, USD/MYR is expected to trade within a 3.90–3.96 range. If the dollar continues to benefit from US inflation and Fed rate-hike expectations, USD/MYR may retest 3.95–3.96. If risk appetite improves and Malaysia's trade and reserve strengths remain intact, the Ringgit could attempt another move toward the 3.90 area.