THE ringgit opened higher against the US dollar on Monday, buoyed by market expectations of a possible interest rate cut in the United States, following a key speech by Federal Reserve Chair Jerome Powell.
As of 8am, the Malaysian currency rose by 210 percentage points (pips) to 4.2035/2270, compared to Friday’s closing rate of 4.2245/2295.
Bernama reported Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying investor sentiment had shifted following Powell’s address at the Jackson Hole Economic Policy Symposium, where he suggested that the Fed’s restrictive monetary policy might soon be revised in light of evolving economic risks.
“Expectations of a September rate cut have strengthened,” said Mohd Afzanizam, noting that short-term US Treasury yields had fallen as a result, with the two-year note declining 11 basis points to 3.68%, and the 10-year yield easing by seven basis points to 4.26%.
He added that the retreat in US yields has improved prospects for emerging market currencies such as the ringgit, as investors increasingly seek opportunities beyond the dollar.
However, the ringgit posted mixed performance against other major currencies. It weakened against the British pound, trading at 5.6781/7098 from 5.6659/6726, slipped to 2.8545/8704 against the Japanese yen from 2.8408/8443, and eased to 4.9210/9485 versus the euro from 4.8996/9054.
Among regional peers, the ringgit firmed against the Indonesian rupiah at 257.0/258.6 from 258.3/258.7 and appreciated slightly against the Philippine peso at 7.38/7.43 from 7.42/7.43. It, however, edged down against the Singapore dollar to 3.2776/2962 from 3.2763/2805 and slipped against the Thai baht to 12.9602/13.0423 from 12.9387/9592. - August 25, 2025
