THE ringgit opened stronger against the US dollar on Thursday, supported by growing market speculation that the United States Federal Reserve (Fed) may ease interest rates in the near term.
At 8am, the local note rose to 4.2185/2260 against the greenback, compared with 4.2235/2305 at the previous day’s close.
Bank Muamalat Malaysia Bhd’s Chief Economist, Mohd Afzanizam Abdul Rashid said recent remarks by senior Fed officials have hinted at possible shifts in monetary policy to address a softening labour market.
“This reinforces expectations that the Fed may take a more accommodative stance during the upcoming Federal Open Market Committee (FOMC) meeting on 16 and 17 September,” he told Bernama.
“The market is anticipating a 25-basis-point reduction in the Fed Funds Rate, and such a move could positively impact the ringgit, as it would narrow the interest rate differential with the Overnight Policy Rate (OPR),” he added.
Afzanizam further projected the ringgit to trade within the 4.21 to 4.22 range against the US dollar throughout the day, in line with prevailing global financial market sentiment.
Despite its gains against the US dollar, the ringgit showed a mixed performance against major currencies. It depreciated against the Japanese yen to 2.8654/8707 from 2.8570/8619, and also weakened against the British pound to 5.6342/6442 from 5.6160/6253.
The local currency similarly lost ground against the euro, sliding to 4.9192/9279 from 4.8929/9010 at Wednesday’s close.
Within the ASEAN region, the ringgit eased against the Singapore dollar to 3.2824/2885, and fell against the Thai baht to 13.0402/0715.
Nevertheless, it gained strength against several regional currencies, appreciating to 7.33/7.35 against the Philippine peso and rising to 257.8/258.4 versus the Indonesian rupiah. - August 8, 2025
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