Business

Ringgit opens higher against U.S. dollar amid ongoing policy uncertainty

The local currency strengthens as the greenback softens following mixed signals from US Federal Reserve officials and weaker manufacturing data

Updated 11 months ago · Published on 04 Nov 2025 9:37AM

Ringgit opens higher against U.S. dollar amid ongoing policy uncertainty
Afzanizam says the US dollar–ringgit pair is likely to trade within a narrow range, hovering around the RM4.20 level throughout the day - November 4, 2025

THE ringgit opened higher against the US dollar on Tuesday and remained steady, supported by lingering uncertainty surrounding US monetary policy, which weighed on the greenback.

At 8 am, the ringgit stood at 4.1900/2065 against the US dollar, up from Monday’s close of 4.1980/2025.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar–ringgit pair is likely to trade within a narrow range, hovering around the RM4.20 level throughout the day.

He noted that US Federal Reserve (Fed) Governor Lisa Cook acknowledged signs of a weakening labour market but refrained from offering policy guidance ahead of the December meeting. Meanwhile, Fed Governor Stephen Miran, who previously voted for a 50-basis-point rate cut, described the current monetary policy stance as restrictive.

“The US Dollar Index (DXY) remained at an elevated level, rising 0.07 per cent to 99.871 points in response to the remarks,” Mohd Afzanizam told Bernama.

Commenting on the broader US economy, he said the ISM Manufacturing Index declined to 48.7 points in October — the eighth consecutive month below the 50-point threshold, indicating continued contraction in the sector.

“Based on the ISM survey, most businesses have been pessimistic as tariffs have driven up prices and caused supply chain disruptions, given the limited availability of domestic production inputs,” he added.

At the opening, the ringgit traded higher against most major currencies. It strengthened against the Japanese yen to 2.7157/7265 from 2.7230/7261 at Monday’s close, gained against the British pound to 5.5006/5223 from 5.5099/5158, and rose versus the euro to 4.8244/8434 from 4.8344/8396 previously.

The local note also advanced against several ASEAN currencies. It improved against the Singapore dollar to 3.2095/2224 from 3.2206/2243, firmed against the Philippine peso to 7.12/7.16 from 7.14/7.15, and strengthened against the Thai baht to 12.8852/9431 from 12.9285/9483. It was little changed against the Indonesian rupiah at 251.2/252.3 from 251.7/252.1 previously. - November 4, 2025

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