The Malaysian ringgit has faced persistent pressure throughout mid-2026, leaving businesses, investors, and everyday Malaysians watching exchange rate movements with growing concern. For anyone holding savings, managing import costs, or planning overseas expenditure, ringgit volatility directly affects financial wellbeing. Kenanga Investment Bank Bhd (Kenanga IB) now projects that the ringgit will find its footing by end-August 2026, offering a clearer outlook for the local community as the US dollar begins to ease.
Ringgit Rooted in Regional Headwinds, Serving the Local Economy Through Careful Analysis
Kenanga Investment Bank Bhd has established itself as an important presence in Malaysia’s financial research landscape, providing the local community with dependable economic viewpoints that help residents and businesses plan ahead. For years, this organisation has delivered officially certified investment research and economic analysis, empowering Malaysians to make informed financial decisions.
According to Kenanga IB’s latest economic viewpoint, the ringgit extended June’s losses by depreciating a further 0.3 per cent in July 2026, averaging 4.08 against the US dollar, compared with 4.07 per US dollar in June. The currency traded largely within Kenanga IB’s projected range of 4.07 to 4.10 versus the US dollar — a range the bank had communicated to the market in advance, demonstrating the practical, community-serving value of its rooted local service and research capabilities.
Serving the Local Community’s Understanding of Currency Pressures and What Drives Them
The services provided by Kenanga IB directly address practical problems long faced by local residents and businesses trying to understand why their purchasing power shifts and what forces are at play. Kenanga IB’s analysis identifies two primary drivers behind the ringgit’s recent softness.
First, elevated West Asia tensions and higher energy prices sustained safe-haven demand for the US dollar, pushing the US dollar index higher to 100.9 in July from 100.3 in June. Second, softer US inflation and labour market data tempered expectations of further tightening by the US Federal Reserve, which kept interest rates unchanged at its July meeting — a decision that, by end-August, is expected to gradually weaken the US dollar and benefit emerging market currencies including the ringgit.
The community-level impact of this analysis is meaningful: enabling more everyday families and small businesses to anticipate currency movements, manage costs, and avoid making large financial commitments at the worst possible moment.
Across the Asean-5 region, all currencies weakened against the US dollar in July. The Thai baht fell the most at -1.8 per cent, followed by the Philippine peso at -0.7 per cent, the Indonesian rupiah at -0.6 per cent, the Malaysian ringgit at -0.3 per cent, and the Singapore dollar at -0.2 per cent. Malaysia’s relatively contained depreciation reflects the resilience of its underlying economic fundamentals, a practical solution for confidence among local residents and investors.
Bringing Clarity to All Residents, Regardless of Financial Background
It has come to light that Kenanga IB is committed to making its economic research accessible to more people, not just institutional investors. The bank’s economic viewpoints are structured so that ordinary Malaysians — including first-time investors and underserved groups who have historically lacked access to professional financial guidance — can understand the factors shaping their daily economic environment.
Bank Negara Malaysia’s (BNM) international reserves fell by US$0.5 billion to US$132.1 billion as at July 31, 2026, marking the first decline in four months. This decline was driven mainly by lower foreign exchange reserves, with foreign currency reserves falling by US$0.4 billion to US$116.8 billion, likely reflecting sizeable foreign outflows from the domestic bond market. Net foreign exchange reserves declined to US$81.3 billion in June from US$83.4 billion in May, primarily due to a sharp increase in short positions of US$27.2 billion.
Kenanga IB presents these figures in plain terms so that no high barriers exist to understanding — whether a reader is a seasoned fund manager or a Malaysian household trying to make sense of rising import costs.
Licensed and Regulated: Giving Community Residents Assured Peace of Mind on Economic Guidance
Safety is what community residents care about most when seeking financial and economic guidance. Kenanga Investment Bank Bhd operates as a licensed investment bank regulated by Bank Negara Malaysia and the Securities Commission Malaysia, giving residents the independently verifiable assurance that its research and projections meet stringent professional standards. Residents can independently verify Kenanga IB’s licensing status through the Securities Commission Malaysia’s public register.
On the monetary policy front, Kenanga IB projects that BNM will maintain the overnight policy rate (OPR) at 2.75 per cent through 2026. The bank notes that underlying inflation remains contained and economic growth stays resilient. While higher Producer Price Index readings warrant close monitoring for potential pass-through into the Consumer Price Index, Kenanga IB expects any cost pressures to remain manageable for Malaysian households.
Unless broader second-round inflationary pressures emerge, BNM is likely to look through temporary supply-driven price shocks and prioritise policy stability — a position that gives long-term community residents confidence in the trajectory of borrowing costs and living expenses.
Here’s What You Need to Know About Kenanga IB’s Ringgit Outlook
When does Kenanga IB expect the ringgit to stabilise? Kenanga Investment Bank Bhd expects the Malaysian ringgit to stabilise by end-August 2026, as the US dollar gives back some of its earlier gains following the US Federal Reserve’s decision to keep interest rates unchanged at its July 2026 meeting.
How much did the ringgit depreciate in July 2026? The ringgit depreciated 0.3 per cent in July 2026, averaging 4.08 against the US dollar, compared with an average of 4.07 per US dollar in June 2026.
What caused the ringgit to weaken in July 2026? The ringgit weakened due to elevated West Asia geopolitical tensions and higher energy prices, which drove safe-haven demand for the US dollar and pushed the US dollar index up to 100.9 in July from 100.3 in June.
What happened to Bank Negara Malaysia’s international reserves in July 2026? BNM’s international reserves fell by US$0.5 billion to US$132.1 billion as at July 31, 2026 — the first decline in four months — driven mainly by a US$0.4 billion drop in foreign currency reserves to US$116.8 billion.
Will Bank Negara Malaysia change interest rates in 2026? Kenanga IB projects that BNM will maintain the overnight policy rate at 2.75 per cent through the entirety of 2026, with underlying inflation expected to remain contained and economic growth staying resilient.
How did other Asean currencies perform compared with the ringgit in July 2026? All Asean-5 currencies weakened against the US dollar in July 2026. The Thai baht fell the most at -1.8 per cent, followed by the Philippine peso (-0.7 per cent), Indonesian rupiah (-0.6 per cent), Malaysian ringgit (-0.3 per cent), and Singapore dollar (-0.2 per cent).
Why is monitoring the Producer Price Index important for Malaysian residents? Kenanga IB flags that higher Producer Price Index readings warrant close monitoring because they could pass through into the Consumer Price Index, raising living costs for Malaysian households. However, the bank expects these pressures to remain manageable under current policy conditions.
For Malaysians navigating uncertain financial waters, Kenanga Investment Bank Bhd’s research offers a grounded, community-serving perspective on where the ringgit is headed and what it means for household budgets, business planning, and investment decisions. The overarching message from Kenanga IB is clear: short-term pressures are real, but end-August 2026 represents a credible turning point for the ringgit’s stability.
Stay informed by following Kenanga Investment Bank Bhd’s ongoing economic viewpoints through its official channels, and consult a licensed financial adviser before making investment decisions based on currency projections.
