THE ringgit opened stronger against the US dollar on Thursday, lifted by renewed expectations that the United States Federal Reserve may lower interest rates in the coming months.
At 8 am, the Malaysian currency stood at 4.2185/2260 against the greenback, improving from Wednesday’s close of 4.2235/2305.
According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, recent commentary from Federal Reserve officials has strengthened market confidence in a possible rate cut, particularly as the Fed responds to signs of weakness in the US labour market.
“This would likely be ringgit-positive, as a Fed rate cut would narrow the interest rate differential with the Overnight Policy Rate (OPR). In light of current market conditions, the ringgit is expected to trade between 4.21 and 4.22 against the US dollar today,” he told Bernama.
The next Federal Open Market Committee (FOMC) meeting is scheduled for 16–17 September and is widely expected to deliver a 25-basis-point reduction in the Fed Funds Rate.
However, the ringgit was mixed against a basket of major and regional currencies in early trading. It slipped against the Japanese yen to 2.8654/8707 from 2.8570/8619, and weakened to 5.6342/6442 versus the British pound from 5.6160/6253. It also fell to 4.9192/9279 against the euro from 4.8929/9010.
Regionally, the local note eased against the Singapore dollar at 3.2824/2885 from 3.2806/2863, and declined against the Thai baht to 13.0402/0715 from 13.0291/0567.
On the upside, the ringgit strengthened slightly against the Philippine peso at 7.33/7.35 from 7.34/7.36, and appreciated against the Indonesian rupiah at 257.8/258.4 from 258.1/258.6. - August 7, 2025
