THE National currency began Friday trading on a stronger footing against the US dollar, as growing conviction over a potential December interest rate cut by the US Federal Reserve lifted sentiment toward emerging-market currencies.
The local unit opened at RM4.1230/1335, edging higher from Thursday’s close of RM4.1305/1345.
The gains coincided with a dip in the US Dollar Index, which slid just below the 100-point mark amid intensifying expectations of a rate reduction.
Bank Muamalat Malaysia Bhd’s chief economist Dr Mohd Afzanizam Abdul Rashid noted that “market pricing for a December rate cut has surged to 85 per cent, compared with less than 40 per cent a week ago,” adding that the shift has already pushed US Treasury yields lower.
Since 14 November, the 2-year and 10-year US Treasury yields have declined by 17 and 14 basis points respectively, now standing at 3.45% and 4.00%.
Afzanizam said this downtrend “should provide further support for emerging-market currencies, including the ringgit,” while cautioning that the local note is likely to remain within a narrow RM4.12 to RM4.13 range as traders await fresh US economic data ahead of the Federal Open Market Committee meeting.
In early Friday trading, the ringgit posted mixed movements against other major currencies. It strengthened against the Japanese yen to 2.6379/6448 but eased against the British pound at 5.4589/4728 and remained largely unchanged against the euro at 4.7823/7944.
Regionally, the ringgit gained across ASEAN peers, rising to 3.1794/1877 against the Singapore dollar and 12.7904/8342 versus the Thai baht. It also strengthened against the Indonesian rupiah at 247.8/248.5 and edged higher to 7.01/7.03 against the Philippine peso.
Analysts suggest the ringgit’s performance reflects a combination of external drivers, particularly US interest rate expectations, and a relatively stable domestic outlook, keeping investors cautiously optimistic in the run-up to the next Federal Reserve meeting. - November 28, 2025
