THE ringgit remained largely stable against the US dollar on Thursday morning, despite growing market expectations that the US Federal Reserve will cut interest rates at its next meeting in September.
At 8.05 am, the local note traded at 4.2045/2160 against the greenback, slightly weaker than Wednesday’s close of 4.2040/2085.
Bernama reported Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, attributing the subdued momentum to market uncertainty over the Federal Reserve’s next policy move.
“Market odds for a US rate cut have risen sharply following remarks by US Treasury Secretary Scott Bessent, who suggested the Fed should slash its funds rate by 50 basis points at the upcoming FOMC meeting,” he said.
While noting that the Federal Reserve operates independently and the Treasury Secretary has no direct influence over monetary policy, he added, “Such a suggestion points to a weakening US economy that needs help.”
Mohd Afzanizam said the ringgit could continue to gain ground if sentiment improves further, with potential for the USD/MYR pair to dip below the RM4.20 level. “Yesterday, the ringgit appreciated against the greenback by 0.57% to RM4.2063,” he noted.
In early trade, the ringgit posted mixed results against major currencies. It fell against the Japanese yen to 2.8608/8688 from 2.8554/8586 and slipped against the British pound to 5.7106/7262 from 5.7078/7139. However, it edged higher against the euro at 4.9243/9378 from 4.9305/9357.
Performance was also varied across regional currencies. The ringgit firmed to 3.2858/2953 versus the Singapore dollar and rose slightly against the Thai baht at 13.0235/0700. It remained steady against the Indonesian rupiah at 259.4/260.3 and unchanged at 7.41/7.43 against the Philippine peso. - August 14, 2025
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