Business

Ringgit firms as softer U.S. treasury yields pressure the dollar

The currency strengthened in early trade, buoyed by a continued fall in US Treasury yields and a weaker as economists warn of uncertainty surrounding a potential US government shutdown

Updated 8 months ago · Published on 17 Nov 2025 8:28AM

Ringgit firms as softer U.S. treasury yields pressure the dollar
The ringgit expected to hover between RM4.13 and RM4.14 through the day - November 17, 2025

THE ringgit opened stronger against the US dollar on Thursday, extending its upward momentum as sustained declines in US Treasury yields continued to weigh on the greenback.

The local currency began the day at 4.1295/1395, edging up from Wednesday’s close of 4.1315/1385.

Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, said the easing in US bond yields had provided clear support.

“US Treasury yields continued to ease, with the 10-year yield falling 4.5 basis points to 4.065%, its lowest level this month and nearly 10 basis points below recent peaks,” he told Bernama.

“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 cautioned that a prolonged shutdown of the US federal government could have far-reaching consequences for global markets.

“Any postponement would leave the Federal Open Market Committee approaching its December rate decision with significantly less information than usual, heightening policy uncertainty,” he warned, noting potential delays to the November employment report and the consumer price index due next month.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit had now entered “an overbought zone”.

He added, “In light of uncertainties over the timing of the US government reopening, we expect traders to remain cautious,” with the ringgit expected to hover between RM4.13 and RM4.14 through the day.

The ringgit’s performance against other major currencies was mixed at the opening. It improved slightly against the yen at 2.6669/6736 (from 2.6681/6728) and rose marginally against the British pound at 5.4187/4319 (from 5.4189/4281).

However, it weakened against the euro to 4.7857/7973 (from 4.7801/7882).

Against regional currencies, the ringgit gained traction on the Indonesian rupiah at 246.9/247.7 and held steady against the Philippine peso at 6.98/7.00. It slipped against the Thai baht to 12.7564/7956 and weakened further against the Singapore dollar at 3.1712/1791. - November 17, 2025

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