Business

Ringgit firms for second day as softer U.S. data and Fed rate cut boost sentiment

Malaysian currency edges towards key RM4.10 threshold against the dollar, buoyed by weakening US Dollar Index

Updated 5 months ago · Published on 12 Dec 2025 9:00AM

Ringgit firms for second day as softer U.S. data and Fed rate cut boost sentiment
Mohd Afzanizam expects the ringgit is to stay in a tight range and possibly attempt to break the psychological RM4.10 level by the end of the day - December 12, 2025

THE ringgit strengthened against the US dollar for a second consecutive day on Friday, supported by weaker US economic data and the Federal Reserve’s widely expected 25-basis-point rate cut.

At 8am, the local currency opened at 4.1000/1100 against the greenback, improving from Thursday’s close of 4.1040/1105. The ringgit last reached this level on 28 April 2021, when it traded at 4.1000/1050.

Bank Muamalat Malaysia chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index had slipped 0.44 per cent to 98.348 as signs emerged of a softening American labour market.

“The ringgit had traded firmer after the Fed delivered the widely expected 25-basis-point cut to the Fed Funds Rate,” he told Bernama.

He added: “Today, we expect the ringgit to stay in a tight range and possibly attempt to break the psychological RM4.10 level by the end of the day.”

The ringgit’s performance was mixed against other major currencies at the opening bell. It weakened against the British pound to 5.4911/5045 from 5.4879/4966, slipped against the euro to 4.8138/8256 from 4.8025/8101 and eased against the Japanese yen to 2.6368/6434 from 2.6333/6375.

Against regional peers, the ringgit strengthened against the Indonesian rupiah to 245.8/246.5 from 246.1/246.6, but fell against the Singapore dollar to 3.1739/1819 from 3.1711/1763 and eased against the Thai baht to 12.9542/9940 from 12.9219/9505. It was unchanged against the Philippine peso at 6.95/6.97. - December 12, 2025

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