THE ringgit opened stronger against the US dollar on Monday, buoyed by renewed market concerns over a potential US government shutdown and speculation of a downward shift in US interest rates, both of which weighed heavily on the greenback.
As of 8.02am, the ringgit stood at 4.1980/2190 against the US dollar, improving from Friday’s close of 4.2050/2090.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market sentiment continues to favour the ringgit amid growing anxiety over the political deadlock in Washington, which could lead to a temporary federal government closure.
"The persistent uncertainty surrounding a possible US government shutdown is expected to drive support for the ringgit, as expectations of lower US interest rates further weaken the dollar," he told Bernama.
“This could see the ringgit attempting to break through the psychological level of RM4.20, after having gained 0.25 percent at the previous close,” he added.
The ringgit also gained ground across a basket of major currencies. It strengthened against the Japanese yen to 2.8348/8491 from 2.8420/8447, rose against the British pound to 5.6417/6699 from 5.6532/6586, and appreciated against the euro to 4.9251/9497 from 4.9405/9452.
Regionally, the ringgit was also broadly higher against key ASEAN currencies. It climbed to 3.2530/2695 versus the Singapore dollar from 3.2604/2638, strengthened against the Indonesian rupiah at 251.9/253.2 from 252.3/252.6, improved to 7.21/7.25 against the Philippine peso from 7.22/7.24, and firmed up against the Thai baht at 12.9265/9963 from 12.9744/9927. - October 1, 2025
