THE ringgit opened slightly firmer against the US dollar on Thursday, buoyed by investor confidence in the country’s economic resilience and well-diversified fundamentals, following the US Federal Reserve’s announcement to hold interest rates steady.
At 8am, the local currency was quoted at 3.9130/9230 against the greenback, improving from Wednesday’s close of 3.9175/9235.
The opening level marked the ringgit’s strongest showing against the US dollar since April 2018, when it briefly touched 3.9030.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid observed that the Fed’s decision had largely been anticipated by markets, with investor focus now turning to the appointment of the next Fed chair.
“Attention will likely shift to who will lead the U.S. Fed next, as that could influence market sentiment, particularly given President Trump’s advocacy for lower interest rates,” he noted, while adding that the US Dollar Index had risen 0.26 per cent in early Thursday trading.
The upbeat sentiment surrounding the ringgit was further reinforced by comments from Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, who emphasised that Malaysia’s growth outlook remains underpinned by strong domestic fundamentals.
“The Malaysian economy is highly diversified, and domestic demand remains resilient. Even our export market is diversified. We don’t trade with just one country; no single country accounts for more than 15 per cent of Malaysia’s exports.
“That demonstrates the breadth of our economic engagement,” he said.
On fiscal policy, Abdul Rasheed highlighted the government’s measures to rationalise subsidies for fuel, electricity, water, and diesel, describing them as a reflection of policy credibility.
This aligns with the Finance Ministry’s recent explanation that the transition from bulk RON95 petrol subsidies to the targeted BUDI MADANI RON95 (BUDI95) programme is projected to curb subsidy leakages and deliver annual fiscal savings of between RM2.5 billion and RM4 billion.
The ministry also reported that sales tax on low-value goods contributed RM817 million in revenue last year, a significant increase from RM476 million in 2024.
The ringgit’s gains were reflected across a range of other major currencies and regional peers. It strengthened against the euro and the Japanese yen, trading at 2.5558/5625 from 2.5652/5692, but weakened slightly against the British pound to 5.4097/4235 from 5.4011/4093.
Among regional currencies, the ringgit advanced against the Singapore dollar to 3.1019/1103 from 3.1072/1122, firmed against the Thai baht to 12.5658/6097 from 12.6135/6389, strengthened against the Indonesian rupiah to 233.9/234.7 from 234.2/234.7, and edged higher against the Philippine peso to 6.66/6.68 from 6.67/6.68.
The combined effect of Malaysia’s resilient economic fundamentals, fiscal prudence, and positive investor sentiment helped the ringgit achieve levels not seen in over five years, highlighting the country’s ability to withstand external volatility while maintaining domestic stability. - January 29, 2026
