THE ringgit opened the week firmer against the US dollar, buoyed by growing expectations of an interest rate cut by the US Federal Reserve after weaker-than-anticipated nonfarm payrolls (NFP) data for August.
At 8am on Monday, the local currency stood at 4.2030/2285 against the greenback, appreciating from Thursday’s close of 4.2260/2320. Markets had been closed on Friday in observance of Maulidur Rasul.
Bernama cited Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, saying, “The softer-than-expected US August NFP report has set the stage for a possible rate cut at next week’s Federal Open Market Committee (FOMC) meeting.”
However, he cautioned that uncertainty in Japan’s political landscape—after Prime Minister Shigeru Ishiba’s resignation—could weigh on regional currencies and support the US dollar. “The situation in Japan, where the prime minister has offered his resignation, appears dollar-positive as the next leadership is expected to be more dovish on fiscal policy,” he noted. He added that the USD/MYR could range between 4.21 and 4.23 in the near term.
The ringgit also gained ground against several major and regional currencies. It appreciated to 2.8322/8496 against the Japanese yen, 5.6694/7038 versus the British pound, and was marginally up at 4.9213/9512 against the euro.
Among ASEAN peers, the ringgit rose against the Singapore dollar to 3.2706/2867 and strengthened to 7.35/7.39 versus the Philippine peso. It also appreciated to 256.5/257.9 against the Indonesian rupiah, though it eased slightly against the Thai baht to 13.0454/1158.- Sept 8, 2025
