PETALING JAYA: The upward trend of the ringgit against the US dollar has prompted parents with children studying overseas to reassess their currency transfer strategies.
The ringgit was traded at 3.9992 against the US dollar yesterday. Year-to-date, the ringgit has appreciated about 1.5%, supported by steady economic growth, a stable monetary policy stance and a softer US dollar.
Architect Datuk Neo Wee Siang, whose son is studying in the United States, said he typically transfers funds via telegraphic transfer (TT) each semester to cover tuition fees and accommodation.
However, with the ringgit strengthening to just below RM4, Neo sees an opportunity to hedge against future expenses.
“With this rate, it is also a good hedge now to exchange a surplus of US dollars in the bank account for future transfers. As first half fees are already taken care of, the conversion of US dollar now will be for the second half of the year,” he said.
Neo said the recent depreciation in the US dollar has made a noticeable difference compared with the period immediately after the Covid-19 pandemic, when the ringgit had weakened significantly against the greenback.
“It is a noticeable gap when it was 4.70 at the time my first child went to the United States right after Covid-19. It will be a huge saving.”
Nevertheless, Neo remains cautious about the volatility of the US dollar and is closely monitoring developments of the global superpower.
“I believe the US dollar will strengthen in the second half of 2026. But for now, I will hedge some amount for the next semester. But in the longer term, I will wait and only decide what to do next.”
Frequent traveller Intan Sufi, 39, who is planning to visit several countries starting with Indonesia by the end of the month, said she intends to take advantage of the current rate by exchanging her ringgit this weekend.
However, she would remain prudent in the months ahead, particularly with Hari Raya Aidilfitri in March.
“I need to manage my cash flow carefully. There will be additional expenses for preparations and family commitments, so I cannot convert too much at one go.”
Intan typically sources her Ramadan and Raya outfits from overseas.
While the current strength of the ringgit presents a favourable window, she prefers to stagger her exchanges to avoid being caught out by potential currency fluctuations.
“I will change some now for my upcoming trip, but I will monitor the rate closely before making any larger conversions,” she said.
On Thursday, Bank Negara kept the overnight policy rate (OPR) unchanged at 2.75%, the level it was reduced to in July 2025, in line with market expectations. The central bank said that at the current OPR level, the Monetary Policy Committee considers the monetary policy stance to be appropriate and supportive of the economy, amid price stability.
Kenanga Research said the ringgit was supported by a softer US dollar and Bank Negara’s decision to maintain its policy stance.
The research house said the US dollar index had fallen below 99.0, pressured by volatility in Japanese government bonds and concerns that European investors may scale back their holdings of US Treasuries.
