Business

Ringgit holds steady amid mixed sentiment despite rising odds of U.S. rate cut

Malaysia’s currency was little changed against the US dollar on Thursday morning, as cautious sentiment overshadowed optimism over a potential US Federal Reserve rate cut in September.

Updated 9 months ago · Published on 14 Aug 2025 9:32AM

Ringgit holds steady amid mixed sentiment despite rising odds of U.S. rate cut
The ringgit could continue to gain ground if sentiment improves further, with potential for the USD/MYR pair to dip below the RM4.20 level - August 14, 2025

THE ringgit remained largely stable against the US dollar on Thursday morning, despite growing market expectations that the US Federal Reserve will cut interest rates at its next meeting in September.

At 8.05 am, the local note traded at 4.2045/2160 against the greenback, slightly weaker than Wednesday’s close of 4.2040/2085.

Bernama reported Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, attributing the subdued momentum to market uncertainty over the Federal Reserve’s next policy move.

“Market odds for a US rate cut have risen sharply following remarks by US Treasury Secretary Scott Bessent, who suggested the Fed should slash its funds rate by 50 basis points at the upcoming FOMC meeting,” he said.

While noting that the Federal Reserve operates independently and the Treasury Secretary has no direct influence over monetary policy, he added, “Such a suggestion points to a weakening US economy that needs help.”

Mohd Afzanizam said the ringgit could continue to gain ground if sentiment improves further, with potential for the USD/MYR pair to dip below the RM4.20 level. “Yesterday, the ringgit appreciated against the greenback by 0.57% to RM4.2063,” he noted.

In early trade, the ringgit posted mixed results against major currencies. It fell against the Japanese yen to 2.8608/8688 from 2.8554/8586 and slipped against the British pound to 5.7106/7262 from 5.7078/7139. However, it edged higher against the euro at 4.9243/9378 from 4.9305/9357.

Performance was also varied across regional currencies. The ringgit firmed to 3.2858/2953 versus the Singapore dollar and rose slightly against the Thai baht at 13.0235/0700. It remained steady against the Indonesian rupiah at 259.4/260.3 and unchanged at 7.41/7.43 against the Philippine peso. - August 14, 2025

Spotlight

Malaysia

Anwar congratulates Modi on becoming India's longest-serving elected PM

Malaysia

Missing jewellery: Rosmah ordered to pay RM67.5 million

People

Malay kampongs in Bangkok: Echoes of southern heritage in Thailand’s capital

Opinion

Johor MB’s exclusionary rhetoric betrays the people, exposes UMNO’s political hypocrisy

Malaysia

Johor and NS polls first major test of post PAS-Bersatu political order

Malaysia

Claimed installation of 12th N. Sembilan ruler invalid - Pengelola Bijaya Diraja

Malaysia

4WD driver who drove backwards on highway nabbed, positive for drugs (video)

By Ian McIntyre

Malaysia

Seven in ten Malaysian workers earn RM5k or less - economist

You may be interested

Business

Supply crisis to push costs beyond oil prices, Whole-of-nation response needed - Hassan Marican

Business

Ringgit strengthens as easing Middle East tensions weigh on US dollar

Business

Open fibre sues Bank Pembangunan, six others in RM2b claim over Aries telecoms liquidation

Business

Ringgit holds firm against major currencies as markets await key US inflation data

Business

BNM's OPR to stay at 2.75 pcent in 2026 amid strong domestic demand - Kenanga IB