Business

Ringgit strengthens as softer U.S. treasury yields weigh on greenback

Markets are turning cautious ahead of key US economic data expected next week, following the House’s overnight passage of the continuing resolution bill

Updated 6 months ago · Published on 13 Nov 2025 9:16AM

Ringgit strengthens as softer U.S. treasury yields weigh on greenback
Analysts warn of policy uncertainty if US government shutdown drags on, with local note expected to hover around RM4.13–RM4.14 range - November 13, 2025

THE ringgit opened stronger against the US dollar on Thursday, buoyed by continued declines in US Treasury yields that pressured the greenback.

At 8.03am, the local currency appreciated to 4.1295/1395 from Wednesday’s close of 4.1315/1385.

IPPFA Sdn Bhd director of investment strategy and country economist, Mohd Sedek Jantan, said US Treasury yields continued to soften, with the 10-year yield slipping 4.5 basis points to 4.065 per cent — its lowest level this month and nearly 10 basis points below recent peaks.

“Markets are turning cautious ahead of key US economic data expected next week, following the House’s overnight passage of the continuing resolution bill,” he told Bernama.

Mohd Sedek cautioned that a prolonged US government shutdown could have broader repercussions, including delays to the November employment report due on 5 December and the upcoming consumer price index release.

“Any postponement would leave the Federal Open Market Committee approaching its December rate decision with significantly less information than usual, heightening policy uncertainty,” he added.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the ringgit had entered an overbought zone.

“In light of uncertainties over the timing of the US government reopening, we expect traders to remain cautious,” he said, adding that the local note is likely to trade between RM4.13 and RM4.14 today.

At the opening, the ringgit posted a mixed performance against major currencies. It strengthened against the yen to 2.6669/6736 from 2.6681/6728 and rose slightly against the British pound to 5.4187/4319 from 5.4189/4281, but weakened against the euro to 4.7857/7973 from 4.7801/7882.

Against regional peers, the ringgit gained versus the Indonesian rupiah to 246.9/247.7 from 247.1/247.7 and was unchanged against the Philippine peso at 6.98/7.00. It, however, slipped against the Thai baht to 12.7564/7956 from 12.7068/7346 and fell against the Singapore dollar to 3.1712/1791 from 3.1683/1742. - November 13, 2025

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