THE ringgit opened higher against the US dollar on Tuesday, buoyed by market uncertainty surrounding a possible United States government shutdown and persistent trade tensions between Washington and Beijing.
At 8am, the local currency strengthened to 4.2165/2300 against the greenback, compared to 4.2240/2275 at last Friday’s close. Markets were closed on Monday in observance of the Deepavali holiday.
According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the improved performance came as technical indicators suggested the ringgit had been oversold, while expectations remain high that the US Federal Reserve may implement a rate cut soon.
“From the technical standpoint, ringgit was already in the oversold position, implying a potential upside for ringgit to appreciate,” he told Bernama.
“The odds for a quarter point interest cut by the US Federal Reserve remain fairly high at 98.9 per cent, despite the lack of the official data points.”
Dr Afzanizam also noted that the US dollar index (DXY) remains resilient, hovering around 98.532, slightly lower than the previous day’s close of 98.586.
He expects the USD-MYR exchange rate to remain rangebound in the near term.
“US dollar-ringgit is likely to linger in a narrow range of 4.21 to 4.22 today,” he said.
Markets eye Trump-Xi meeting
Looking ahead, investors are expected to maintain a cautious stance as attention turns to the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping next week.
“The market sentiments may be wary about the outcome from the meeting, as China’s decision not to buy soyabean from the US is hurting the American farmers,” Dr Afzanizam observed.
“Perhaps the market is hoping for a better deal, but Trump is unpredictable. Hence, markets will be on the cautious mode.”
Ringgit higher across major and regional currencies
At the opening, the ringgit also strengthened against a basket of major and regional currencies.
The local note rose against the British pound to 5.6522/6703 from 5.6741/6788, gained against the euro to 4.9110/9267 from 4.9421/9462, and appreciated against the Japanese yen to 2.7966/8058 from 2.8218/8244.
Regionally, the ringgit gained against the Singapore dollar to 3.2595/2702 from 3.2635/2665, inched up versus the Indonesian rupiah to 254.3/255.3 from 254.6/254.9, and was marginally higher against the Philippine peso at 7.25/7.27 from 7.26/7.27.
However, it weakened slightly against the Thai baht, falling to 12.9543/13.0030 from 12.9301/9471 previously.
The ringgit’s performance comes amid wider regional and global concerns, with investors closely watching US fiscal developments, central bank signals, and geopolitical risks ahead of key summits and negotiations. - October 21, 2025
