THE ringgit continued its upward momentum on Tuesday morning, opening marginally higher against the US dollar as the greenback softened ahead of the release of the Federal Open Market Committee (FOMC) meeting minutes later in the day.
At 8am, the local currency strengthened to 4.0500/0670 versus the US dollar, compared with Monday’s close of 4.0580/0625.
Market participants are closely watching the FOMC minutes, which are expected to be the main catalyst for currency movements, as the economic calendar remains relatively quiet across most markets ahead of the New Year holiday.
At the same time, investors continue to factor in the likelihood of further US interest rate cuts in 2026, following the Federal Reserve’s 25-basis-point reduction at its December policy meeting.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the ringgit’s resilience is increasingly being supported by domestic flow dynamics rather than shifts in external risk sentiment.
He noted that year-end liquidity conditions are expected to remain thin, but the underlying flow direction continues to favour the local currency.
“Export conversion, portfolio inflows and corporate hedging activity continue to favour the ringgit, creating a persistent supply of US dollars in the local market.
“As a result, any intraday US dollar upticks are likely to be met by exporter selling and real money demand for ringgit assets, keeping US dollar-ringgit capped despite the quieter trading environment,” he told Bernama.
Against other major currencies, the ringgit showed mixed performance at the opening.
It firmed slightly against the euro to 4.7677/7877 from 4.7787/7840 at Monday’s close and edged higher versus the British pound to 5.4711/4941 from 5.4742/4803. However, it weakened against the Japanese yen, slipping to 2.5970/6082 from 2.5956/5987 previously.
The local currency, however, strengthened broadly against its Asean peers.
It rose against the Singapore dollar to 3.1505/1642 from 3.1572/1610, gained against the Thai baht to 12.7910/8540 from 12.8985/9190, strengthened versus the Indonesian rupiah to 241.2/242.3 from 241.7/242.1, and advanced against the Philippine peso to 6.88/6.92 from 6.90/6.91 previously. - December 30, 2025
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