Business

Ringgit rises to one-year high as bank negara holds interest rate steady

Currency strengthened to the 4.17 level against the US dollar on Friday, its highest in more than a year, after Bank Negara Malaysia (BNM) maintained the OPR amid expectations of lower U..S interest rates

Updated 11 months ago · Published on 07 Nov 2025 9:14AM

Ringgit rises to one-year high as bank negara holds interest rate steady
Mohd Afzanizam expects the ringgit to trade between 4.17 and 4.19 today - November 7, 2025

THE ringgit opened higher against the US dollar on Friday, touching a one-year high after Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 2.75 per cent during its final Monetary Policy Committee (MPC) meeting of 2025.

At 8 am, the local currency traded at 4.1760/1865 against the greenback, improving from Thursday’s close of 4.1820/1845. It neared its previous high of 4.1730/1790 recorded on 2 October last year.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the decision to hold rates steady, coupled with growing prospects of a rate cut in the United States, had increased the appeal of ringgit-denominated assets.

“With BNM standing pat on the OPR, the prospect of lower interest rates in the United States would gradually make ringgit-denominated assets more attractive as interest rate differentials narrow. As such, we expect the ringgit to trade between 4.17 and 4.19 today,” he told Bernama.

The US Dollar Index (DXY) fell below the 100-point threshold to 99.720, reflecting weakness in the US labour market.

“As the government shutdown remains in force, traders and investors have relied on private-sector data to gauge labour market conditions. US data showed more than 150,000 job cuts in October, the largest reduction in 20 years. Hence, the case for an interest rate cut is building for the December meeting,” Dr Mohd Afzanizam added.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the ringgit’s firm opening reflected fading strength in the US dollar and stabilisation in regional markets.

“The recent upward run in the US dollar appears to be fading, with the ringgit opening on a firmer footing against the greenback, Thai baht and Singapore dollar. Market attention has rotated back to the United States’ fiscal outlook, coinciding with a broad sell-off in US Treasuries and steadier performance in global equity indices,” he said.

He added that while fiscal pressures remain a concern in the US, economic data suggest the world’s largest economy has not yet entered a sharp slowdown.

“While we continue to view December as the likeliest timing for a Federal Reserve rate cut, the path beyond that remains subject to how fiscal and economic indicators evolve,” Mohd Sedek noted.

At the opening, the ringgit was mixed against major currencies. It slipped against the yen to 2.7305/7375 from 2.7202/7220, eased versus the euro to 4.8220/8342 from 4.8143/8172, and weakened against the British pound to 5.4864/5002 from 5.4696/4729.

However, the local note strengthened against ASEAN currencies. It rose against the Singapore dollar to 3.2017/2103 from 3.2034/2055, climbed against the Indonesian rupiah to 250.0/250.7 from 250.3/250.6, appreciated against the Philippine peso to 7.08/7.10 from 7.09/7.10, and improved against the Thai baht to 12.8829/9285 from 12.9178/9311 previously. - November 7, 2025

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