Business

Ringgit opens marginally higher as U.S. dollar weakens on Fed rate cut hopes

US equities benchmark rose higher while US Treasury yields fell as calls for aggressive interest rate cuts became louder as higher import tariff could harm the US the economy

Updated 1 year ago · Published on 25 Apr 2025 8:55AM

Ringgit opens marginally higher as U.S. dollar weakens on Fed rate cut hopes
The ringgit should stay positive against the US Dollar in light of the decline in DXY - April 25, 2025

THE ringgit opened marginally higher against the US dollar on Friday, as the greenback reacted to growing prospects of a lower US Federal Reserve interest rate.

The US Dollar Index (DXY) fell to 99.303 points overnight, Bernama cited today.

At 8am, the local unit stood slightly higher at 4.3615/3870 against the greenback, compared with Thursday’s close of 4.3695/3750.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit should stay positive against the US Dollar in light of the decline in DXY.

“Benchmark for US equities were higher while US Treasury yields fell as calls for aggressive interest rate cuts became louder as higher import tariff could harm the US the economy.

“Fed officials such as Christopher Waller suggested that the rate cuts should take place as higher tariff would affect the labour market negatively,” he told Bernama.

Back home, the ringgit strengthened against a basket of major currencies.

It rose against the Japanese yen to 3.0528/0708 from 3.0670/0710 at Thursday’s close, gained on the British pound to 5.8121/8461 from 5.8127/8201, and fell versus the euro to 4.9599/9889 from 4.9738/9801.

Against regional currencies, the ringgit also traded higher.

It firmed against the Singapore dollar to 3.3233/3432 from 3.3307/3354, and strengthened versus the Thai baht to 13.0510/1398 from 13.0632/0874.

The local note also increased against the Philippine peso to 7.71/7.76 from 7.72/7.74 and appreciated against the Indonesian rupiah to 258.4/260.1 from 258.9/259.4. - April 25, 2025

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