THE national currency opened stronger against the US dollar on Wednesday, lifted by weaker-than-expected US economic data that dampened sentiment towards the greenback.
At 8am, the local currency stood at 4.2180/4.2315 against the US dollar, an improvement from Tuesday’s close of 4.2260/4.2310.
Bernama reported Bank Muamalat Malaysia Bhd’s chief economist, Afzanizam Rashid, saying the subdued reading of the US ISM Services Purchasing Managers’ Index (PMI) reinforced market expectations of a possible interest rate cut by the US Federal Reserve in September.
“Weaker US economic data, including last Friday’s non-farm payrolls, has shifted the narrative. The likelihood of rate cuts is rising as policymakers seek to support growth,” he said.
Domestically, Afzanizam noted that the ringgit has posted strong gains against the US dollar in recent days, though he cautioned that some profit-taking could occur.
“We expect the ringgit to trade between RM4.22 and RM4.24 against the US dollar today,” he added.
In early trade, the ringgit was also mostly higher against a basket of major and regional currencies.
It appreciated against the Japanese yen at 2.8795/2.8889 from 2.8618/2.8654 and firmed against the British pound to 5.6197/5.6377 from 5.6159/5.6226. However, it weakened slightly versus the euro to 4.8954/4.9110 from 4.8772/4.8830.
Against regional peers, the ringgit advanced against the Singapore dollar to 3.2841/3.2949 from 3.2793/3.2834 and climbed against the Thai baht to 13.0747/13.1229 from 13.0408/13.0627.
It also gained on the Philippine peso at 7.36/7.39 from 7.33/7.34 and edged higher against the Indonesian rupiah to 257.6/258.5 from 257.8/258.2. - August 6, 2025
