THE ringgit opened higher against the US dollar on Tuesday, buoyed by improved local market sentiment following positive remarks from Bank Negara Malaysia (BNM) and growing expectations of a potential softening in US Federal Reserve policy.
At 8am, the local currency was quoted at 4.2220/2315 against the greenback, firmer than Monday’s close of 4.2265/2295.
Market sentiment was lifted after BNM Governor Datuk Seri Abdul Rasheed Ghaffour suggested that the ringgit could strengthen to RM4 against the US dollar by the end of the year, bolstering confidence in Malaysia’s economic outlook.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that while the US Dollar Index (DXY) continues to edge higher amid the US government shutdown, its momentum may be unsustainable.
“Philadelphia Federal Reserve President Anna Paulson signalled at a recent National Association for Business Economics gathering that interest rates may be reduced to more neutral levels, with tariff-related inflation seen as manageable,” he said.
“As such, the rise in DXY seems unsustainable. Should the US government shutdown be resolved, DXY could see a correction. For now, however, the sentiment still favours the dollar, and the US dollar-ringgit pair is expected to hover around RM4.22 today,” Mohd Afzanizam told Bernama.
The ringgit also posted gains against other major currencies. It advanced to 4.8832/8942 against the euro from 4.9006/9041 on Monday, rose to 2.7694/7758 against the Japanese yen from 2.7775/7796, and firmed to 5.6292/6419 against the British pound from 5.6369/6409.
In regional trade, the ringgit strengthened against several ASEAN currencies. It appreciated to 12.9517/9888 against the Thai baht, rose to 3.2507/2588 against the Singapore dollar, improved to 7.25/7.27 against the Philippine peso, and gained to 254.7/255.4 against the Indonesian rupiah. - October 14, 2025
