THE ringgit strengthened against the U.S. dollar at the start of trading today, tracking a weaker greenback as the US Dollar Index fell amid light market activity during the holiday-shortened week.
At 8am, the local currency rose to 4.0650/4.0765 against the US dollar, improving from 4.0770/4.0800 at Monday’s close.
The U.S. Dollar Index declined by 0.33 per cent to 98.271 points, reflecting reduced market participation and softer sentiment towards the US currency.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the softer dollar was largely the result of thin trading conditions during the festive period, coupled with dovish remarks from several US Federal Reserve officials.
He said recent signals from the Federal Open Market Committee indicated a cautious but accommodative policy stance, with policymakers divided over the timing and scale of future interest rate moves.
“The latest FOMC decision on Dec 10 saw divided views among members whereby two voted to maintain the benchmark while one chose to vote for a 50-basis-point cut,” he said.
Afzanizam said demand for the U.S. dollar could persist in the near term due to subdued regional trading and the lack of fresh market catalysts, with the ringgit expected to trade within a narrow range.
He expects the local currency to oscillate between RM4.07 and RM4.08 against the greenback.
Against other major currencies, the ringgit was mixed in early trade. It eased slightly against the Japanese yen to 2.5908/2.5983 from 2.5896/2.5916 and slipped marginally versus the British pound to 5.4751/5.4906 from 5.4750/5.4790.
However, the ringgit strengthened against the euro to 4.7821/4.7956 from 4.7827/4.7862 at the previous close.
The local currency also gained against most regional peers. It rose versus the Singapore dollar to 3.1556/3.1647 from 3.1592/3.1618, appreciated against the Thai baht to 13.0560/13.1022 from 13.0740/13.0895, firmed against the Indonesian rupiah to 242.2/243.1 from 242.9/243.3, and strengthened against the Philippine peso to 6.92/6.94 from 6.94/6.95. - December 23, 2025
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