THE ringgit strengthened slightly against the US dollar in early trading on Wednesday, supported by cautious market sentiment following mixed signals from United States Federal Reserve officials over the future path of interest rates.
At 8.01am, the local currency rose to 3.9250/9360 versus the greenback, compared with Tuesday’s close of 3.9295/9360.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the latest comments from Fed policymakers reflected differing assessments of the current monetary policy stance.
He noted that Fed governor Stephen Miran reiterated his long-held view that the current policy rate remains restrictive and should be lowered to provide support for the US economy.
At the same time, Richmond Fed president Tom Barkin said last year’s interest rate cut functioned as an insurance move to prevent further deterioration in the US labour market.
On Jan 28, the Federal Reserve paused its rate-cutting cycle at its first meeting of 2026, keeping the federal funds rate unchanged in the range of 3.50 to 3.75 per cent.
Mohd Afzanizam said the ringgit had closed stronger against the US dollar on Tuesday and appeared poised to maintain its upward momentum in the near term, with technical support seen at RM3.8722.
“Perhaps today, the USDMYR could hover around 3.92 to 3.94,” he told Bernama.
Against major currencies, the ringgit traded mostly lower. It strengthened against the Japanese yen to 2.5189/5262 from 2.5210/5253 at the previous close, but weakened versus the euro to 4.6370/6500 from 4.6341/6417 and slipped against the British pound to 5.3749/3900 from 5.3704/3793.
The local currency opened mostly higher against regional peers. It appreciated against the Singapore dollar to 3.0898/0990 from 3.0919/0973, rebounded versus the Thai baht to 12.3942/4376 from 12.4584/4845, and strengthened against the Indonesian rupiah to 234.2/235.0 from 234.5/235.0 previously.
However, the ringgit eased against the Philippine peso, slipping to 6.71/6.73 from 6.66/6.68 on Tuesday.
Currency traders remain focused on further guidance from US policymakers and upcoming economic data, which are expected to shape expectations for interest rate moves and influence near-term exchange rate trends. - February 4, 2026
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