Dollar falls 0.43% against ringgit to 4.0460 as oil slides
Key Facts
The dollar fell 0.43% against the Malaysian ringgit to 4.0460 on November 6, reflecting a rise in the Malaysian currency, according to a report by The Vibes. The report said the ringgit had risen 1.01% over the previous month and 3.28% over the previous year. The gains coincided with lower oil prices amid hopes of de-escalation in the conflict with Iran. West Texas Intermediate was trading near $91 a barrel, while Brent held near $99. The daily move put the ringgit at the center of markets’ response to the dollar’s trajectory, energy prices and political developments.
Both crude benchmarks were heading for weekly losses, with WTI expected to fall about 12% and Brent 13% in the week of November 6. The report attributed oil’s weakness to growing hopes for a diplomatic solution to the conflict with Iran. For Malaysia, it said a stronger ringgit and lower international oil prices could help limit imported inflation and energy costs. It added that a continued decline in crude could affect government revenue linked to oil. These channels point to a potential two-sided effect on the Malaysian economy, without establishing the final outcome of either.
The easing trajectory kept markets closely tied to developments in Washington and Tehran. The report said the results of the U.S. midterm elections had raised expectations that Congress would increase pressure on the administration to reconsider military involvement and pursue a diplomatic settlement. Meanwhile, the dollar index fell to about 101.5 points, as investors reassessed what the election results meant for President Donald Trump’s approach to Iran. The report said Tehran was reviewing mediators’ proposals on its nuclear program. But it is demanding that the U.S. naval blockade of its ports be lifted, sanctions eased and frozen assets released before it fully reopens the Strait of Hormuz.
Hopes for de-escalation do not mean shipping risks in the Gulf have disappeared. The report cited at least five vessel-related incidents in the Persian Gulf since the previous Sunday, despite a recovery in Gulf oil exports to levels close to those before the war. Transport costs also remained high, signaling that risks to navigation persist. On November 5, the Associated Press reported that two oil tankers and a tugboat caught fire after hitting mines in the Strait of Hormuz. This reflects continued tensions in a vital energy export corridor as prospects for a settlement are being discussed.
In Malaysia, Bank Negara quoted an average dollar rate of 4.0460 ringgit on November 5, the latest trading date shown on the open prices page. An economist at Bank Muamalat said holding interest rates was in line with expectations and that Malaysia’s GDP growth in 2026 was expected to exceed 5%. This provides local context for the currency’s trajectory, while moves in the dollar and oil also remained tied to developments in the United States and Iran. On November 5, Iranian Foreign Minister Abbas Araghchi discussed de-escalation efforts with the foreign ministers of Kuwait and Turkey, according to the Associated Press. These contacts remain part of the diplomatic process markets are watching.
Attention now turns to U.S. labor market indicators and interest rate pricing. Private companies added 86,000 jobs in October, according to ADP data, while initial jobless claims fell to their lowest level in 57 years. According to the report, markets were pricing in a roughly 75% probability that the Federal Reserve would raise interest rates by 25 basis points the following month. These figures link the assessment of labor market resilience with expectations for U.S. monetary policy, both factors currency markets may track. Oil, meanwhile, remains affected by the course of de-escalation and risks to Gulf shipping that have not disappeared.