Ringgit remains stable against US dollar as investors await key economic data

The USD/MYR rate is projected to stay between RM4.41 and RM4.42 – March 11, 2025

Lower inflation figures would be positive for the ringgit as the U.S. Federal Reserve may consider lowering interest rates to support the economy

THE ringgit opened unchanged against the US dollar in early trading today as investors adopted a "wait-and-see" approach following Bank Negara Malaysia's recent decision to maintain stable interest rates.

Bernama reported, at 9am, the local currency stood at 4.4200/4275 against the US dollar, slightly higher from its closing value of 4.4200/4235 on the previous day.

Bank Islam Malaysia Bhd Chief Economist Dr. Mohd Afzanizam Abdul Rashid told Bernama that technical charts still suggest that the USD/MYR pair remains largely neutral, indicating that the ringgit may continue to trade within its current range.

“As a result, the USD/MYR is projected to stay between RM4.41 and RM4.42, with the market awaiting the release of the U.S. Consumer Price Index (CPI) data tomorrow night (Malaysian time),” he told Bernama.

Dr. Afzanizam further noted that the consensus expects core CPI in the U.S. to remain at 2.9% and 3.2% for February, compared to 3.0% and 3.3% in January, respectively.

“Lower inflation figures would be positive for the ringgit as the U.S. Federal Reserve may consider lowering interest rates to support the economy,” he added.

Meanwhile, the ringgit strengthened against several major currencies.

The local currency rose against the Japanese yen, trading at 3.0052/0105, up from 3.0013/0039 at Monday's close.

However, it depreciated slightly against the British pound, falling to 5.6908/7004 from 5.7080/7125, and also weakened marginally against the euro, with the exchange rate shifting to 4.7908/7990 from 4.7992/8030 previously.

In ASEAN markets, the ringgit displayed mixed performance. It strengthened against the Thai baht, moving to 13.0272/0585 from 13.0777/0943 at Monday’s close, and also gained against the Singapore dollar, reaching 3.3156/3215 from 3.3211/3242.

 However, the ringgit remained virtually unchanged against the Indonesian rupiah at 270.0/270.6, compared to 270.0/270.3, and was stable against the Philippine peso at 7.70/7.72, slightly better than the previous closing of 7.70/7.71.

The market remains cautious as it awaits the latest inflation data from the U.S., which could significantly influence the movement of the ringgit in the coming days. – March 11, 2025

ringgit, US Dollar, US Fed, interest, rate, Bank Negara Malaysia, Mohd Afzanizam Abdul Rashid