Malaysia

Ringgit slips at opening against Greenback as US rate cut hopes fade

In light of the latest US CPI and China’s GDP, the ringgit could experience some knee jerk reaction with the US dollar-ringgit pair at around RM4.24-RM4.26 today

Updated 1 year ago · Published on 16 Jul 2025 9:07AM

Ringgit slips at opening against Greenback as US rate cut hopes fade
US CPI report suggests inflation rate there is climbing, dashing hopes for an interest rate cut - July 16, 2025

THE ringgit opened lower against the US dollar today as the greenback strengthened on waning hopes of an interest rate cut this month by the United States.

At 8 am, the ringgit dipped to 4.2480/2575 against the greenback, compared to Tuesday’s close of 4.2395/2440.

Bernama cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying the US June Consumer Price Index (CPI) report released on Tuesday suggests that the inflation rate there is climbing, dashing hopes for an interest rate cut at the upcoming US Federal Open Market Committee (FOMC) meeting at the end of July.

"The US CPI came in at 2.7 per cent higher year-on-year in June from 2.4 per cent in the preceding month and similarly, the core CPI rose 2.9 per cent during June after sustaining 2.8 per cent increases for three consecutive months," he told Bernama.

Mohd Afzanizam also noted that China's second quarter gross domestic product (GDP) moderated to 5.2 per cent from 5.4 per cent in the first quarter, resulting in the Chinese yuan weakening against the greenback by 0.15 per cent to 7.1825 yuan. 

"In light of the latest US CPI and China’s GDP, the ringgit could experience some knee jerk reaction with the US dollar-ringgit pair at around RM4.24-RM4.26 today," he added.

At the open, the ringgit was traded higher against a basket of major currencies.

It improved against the Japanese yen to 2.8552/8618 from 2.8702/8734 yesterday, strengthened against the British pound to 5.6893/7021 from 5.7047/7107, and gained versus the euro to 4.9311/9421 from 4.9539/9591.

The local note trended mixed against ASEAN currencies.

The ringgit trended firmer vis-à-vis the Singapore dollar at 3.3066/3145 from 3.3095/3133, and edged up against the Thai baht to 13.0355/0783 from 13.0784/0988.

But it slipped against the Indonesian rupiah to 261.1/261.8 from 260.6/261.0 and dropped against the Philippine peso at 7.49/7.51 from 7.47/7.49 from Tuesday's close. - July 16, 2025

Spotlight

Malaysia

Tuanku Muhriz to focus on state affairs; Will not attend Conference of Rulers meeting

Malaysia

Sarawak projects record RM15.09b revenue, budgets RM10.1b for development in 2027

Malaysia

Sultan Nazrin: Delay in environmental action places future generations at risk

Malaysia

Woman allegedly raped at KL shopping centre after being threatened with intimate video

Malaysia

Jordan’s King confers highest civilian honour on Sultan Ibrahim

Malaysia

Driver monitoring aims to stop commercial vehicle crashes before they happen

Malaysia

KTMB heritage sites set for tourism makeover, says Loke

Malaysia

Zara Qairina’s mother: No doctors recorded injuries consistent with being beaten

You may be interested

Malaysia

Two 20-year-olds killed in Federal Highway crash

Malaysia

Selangor records moderate air quality, Johor extends school closures as haze persists

Malaysia

One of five suspects arrested over helmet attack on 23-year-old in Sabah

Malaysia

MCMC probes Facebook post suspected of insulting Islam

Malaysia

Indonesia deploys 60,000 personnel to contain fires as haze threat persists

Malaysia

Express bus crashes into school surau at site of fatal SUV accident

Malaysia

Teacher to be charged over fatal crash that killed Form One student

Malaysia

PKR leader challenges BN to state position on Eric See-To controversy

By Alfian Z.M. Tahir