Business

Ringgit strengthens on growing expectations of U.S. rate cut

The currency opens firmer against the U.S. dollar buoyed by signs of weakening U.S. employment data and increasing market speculation that the Fed Reserve may ease monetary policy next week

Updated 10 months ago · Published on 04 Dec 2025 9:34AM

Ringgit strengthens on growing expectations of U.S. rate cut
“The ringgit could stay in positive territory, trading between RM4.11 and RM4.13,” Afzanizam says - December 4, 2025

THE ringgit began trading at 4.1100/1200 against the US dollar at 8am on Thursday, appreciating from Wednesday’s close of 4.1200/1235.

Analysts attributed the firmer tone to rising expectations of a US interest rate cut.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index had declined by 0.48 per cent to 98.880, reflecting growing anticipation of Federal Reserve intervention.

“The latest ADP Employment Change, which measures employment creation in the private sector, fell by 32,000 in November. The numbers suggest that the labour market is weak and warrants active intervention by the Fed via monetary stimulus,” he told Bernama.

The ringgit touched a fresh 14-month high on Wednesday, closing at 4.1200 against the US dollar, as ongoing speculation of a Fed rate cut continued to weigh on the greenback. On a year-to-date basis, the local currency has strengthened by 8.5 per cent.

“Today, the ringgit could stay in positive territory, trading between RM4.11 and RM4.13,” Mohd Afzanizam added.

At the market open, the ringgit showed a mixed performance against other major currencies. It eased against the Japanese yen to 2.6499/6565 from 2.6476/6501 and slipped against the British pound to 5.4852/4986 from 5.4697/4744, while gaining against the euro to 4.7947/8064 from 4.7982/8080.

Against regional peers, the ringgit exhibited a firmer stance. It strengthened against the Singapore dollar to 3.1767/1847 from 3.1810/1839, advanced against the Indonesian rupiah to 247.1/247.9 from 247.7/248.1, appreciated against the Philippine peso to 6.97/7.00 from 6.99/7.00, and rose against the Thai baht to 12.8780/9190 from 12.9024/9186. - December 4, 2025

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