The Malaysian Ringgit (MYR) performed steadily on Tuesday, February 10, 2026. Despite global geopolitical tensions weighing on markets earlier in February, risk sentiment improved as the US government signaled a delay in military actions. Benefiting from high international oil prices and steady growth in Bank Negara Malaysia's (BNM) international reserves, the Ringgit successfully recovered recent losses, stabilizing around the 4.08 level against the US dollar.
Market Overview
Global and Regional Context
The global forex market experienced significant volatility in early February. The US Federal Reserve maintained interest rates at 3.5% - 3.75% in its late-January meeting, expressing vigilance over inflation, which initially supported the dollar. However, a recent preliminary agreement between the US and Iran to de-escalate friction in the Strait of Hormuz allowed risk appetite to resurface today, providing a breather for non-USD currencies.
Local Market Performance
The Ringgit closed at 4.0820 against the US dollar today, strengthening from last Friday's 4.1050. BNM's latest data shows international reserves grew to US$126.9 billion by the end of January. Despite challenges to the current account from global trade fluctuations, sustained FDI inflows into Malaysia's data center and green energy sectors provided solid structural support for the currency.
Sector and Key Highlights
USD/MYR
Influenced by the US Dollar Index (DXY) pulling back slightly from the 103 level, USD/MYR tested the 4.08 support level today. Analysts believe that as long as Middle East tensions do not worsen, the Ringgit is likely to maintain a resilient trend supported by the 2.75% OPR.
SGD/MYR
The SGD/MYR pair fluctuated near 3.1150. While the Monetary Authority of Singapore (MAS) maintains its tight monetary policy to combat imported inflation, the Ringgit remained competitive due to the energy export premium.
Commodity Linkages
Due to geopolitical uncertainty, WTI crude oil prices remained above $95 per barrel. As a net energy exporter, high oil prices have bolstered Malaysia's trade surplus expectations, directly benefiting the Ringgit.
Currencies to Watch (For Observation Only)
| Currency Pair | Current Level (Est.) | Reason for Observation |
|---|---|---|
| USD/MYR | 4.0820 | Testing the support near the 100-day moving average as markets await US CPI data. |
| SGD/MYR | 3.1150 | Trading within a narrow range of 3.10-3.13, reflecting balanced economic fundamentals between the two nations. |
Market Drivers
- Geopolitical De-escalation: The temporary truce between the US and Iran reduced energy supply chain risks and improved emerging market risk appetite.
- Reserves Growth: The continuous increase in BNM's international reserves (US$126.9 billion) enhanced the capital buffer against external shocks.
- Fed Policy Path: Markets widely expect the Fed to hold rates steady in March, causing the "hawkish" USD premium to fade.
- FDI Conversions: Major investments from global tech giants into Malaysian data centers are reaching peak conversion periods into the local currency.
Outlook
In the short term, market focus shifts to upcoming US inflation data. Analysts expect the Ringgit to trade between 4.05 and 4.12 through the end of February. If crude oil prices hold above the $90 mark, the MYR may challenge the 4.00 long-term psychological support level.