THE ringgit opened stronger on Wednesday, reaching a new 13-month high against the US dollar at 4.1285/1440, bolstered by a weaker greenback following softer US economic data.
The local unit had closed at 4.1360/1395 on Tuesday.
The ringgit last traded at a similar level on 30 September 2024, when it ended the day at 4.1210 against the dollar.
It also advanced across regional and major currencies, strengthening to 3.1733 versus the Singapore dollar — its firmest level in more than three years — and gaining against the Philippine peso, Thai baht and Indonesian rupiah.
The local currency was also higher against the Japanese yen, euro and British pound.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, said the rebound was largely driven by weaker US labour market data.
“The US Automatic Data Processing (ADP) employment report signalled further cooling in the American labour market,” he said.
“The weaker-than-expected private payroll gains in October have reinforced market confidence that the Federal Reserve’s rate-hiking cycle may have ended, sending the US dollar index lower overnight.
This shift has improved sentiment towards risk-sensitive Asian currencies, placing the ringgit in a stronger position.”
He added that the ringgit’s near-term outlook remains constructive.
“With dollar momentum easing and Malaysia’s domestic fundamentals remaining steady, the ringgit’s near-term outlook is constructive, supported by renewed foreign interest and improving confidence in the local market,” he said. - November 12, 2025
