Business

Ringgit firms as weaker U.S. data strengthens expectations of imminent Fed rate cuts

Local note advances against the US dollar and most major units as traders position ahead of next week’s FOMC meeting

Updated 10 months ago · Published on 02 Dec 2025 9:25AM

Ringgit firms as weaker U.S. data strengthens expectations of imminent Fed rate cuts
Afzanizam expects the ringgit to remain steady within the RM4.12–RM4.13 range as markets tread carefully ahead of the Federal Open Market Committee’s imminent decision - December 2, 2025

THE ringgit opened stronger against the U.S. dollar and a range of major currencies, supported by growing market confidence that the United States Federal Reserve will cut interest rates next week following a run of softer US economic data.

The U.S. Dollar Index slipped 0.06 per cent to 99.401 points as the greenback continued to lose momentum.

At 8am, the ringgit rose to 4.1275/1380 against the US dollar compared with Monday’s close of 4.1300/1365.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest Institute for Supply Management (ISM) manufacturing index signalled further deterioration in business sentiment in November.

“The index fell to 48.2 per cent last month against the consensus estimate of 49.0 per cent,” he said, noting that most survey respondents cited concerns over higher operating costs driven by increased import tariffs.

“Most respondents from the survey indicated wariness over higher operating cost due to higher import tariffs, which led them to rethink their hiring decision.”

He expects the ringgit to remain steady within the RM4.12–RM4.13 range as markets tread carefully ahead of the Federal Open Market Committee’s imminent decision.

The ringgit also opened higher against major currencies. It strengthened to 5.4528/4667 against the British pound from 5.4644/4730, and appreciated against the euro to 4.7916/8038 from 4.7995/8070. The local currency improved against the Japanese yen, trading at 2.6545/6616 compared with 2.6594/6637 previously.

Regionally, the ringgit advanced against most ASEAN currencies, except the Philippine peso, against which it was unchanged at 7.05/7.07. It gained against the Singapore dollar to 3.1836/1919 from 3.1880/1932, edged higher against the Indonesian rupiah to 247.6/248.4 from 247.8/248.3, and rose against the Thai baht to 12.8868/9296 from 12.9026/9290. - December 2, 2025

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