THE ringgit is expected to continue its upward trajectory next week, buoyed by growing expectations of a potential interest rate cut by the United States Federal Reserve as early as September.
Bernama cited Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid saying the ringgit could strengthen past the 4.20 level against the US dollar following Fed Chair Jerome Powell’s dovish remarks at the Jackson Hole Economic Policy Symposium on Friday.
"The US Dollar Index (DXY) retreated alongside US Treasury yields as Powell signalled that the current tight monetary policy stance may need to be recalibrated to support economic growth," he told Bernama.
As a result, investors have increased their bets on a rate cut during the upcoming Federal Open Market Committee (FOMC) meeting scheduled for 16–17 September.
"Next week, market attention will also turn to key US economic data, including the Conference Board's consumer confidence index, which measures public sentiment on economic activity, and the Personal Consumption Expenditures (PCE) price index, which tracks inflation or deflation across a wide range of consumer spending," Mohd Afzanizam added.
Despite the optimistic outlook, the ringgit ended the week lower against the greenback, closing at 4.2245/2295 on Friday compared with 4.2085/2155 the previous week.
However, the local currency traded stronger against a basket of major currencies. It rose against the Japanese yen to 2.8408/8443 from 2.8653/8702, strengthened against the euro to 4.8996/9054 from 4.9185/9267, and appreciated versus the British pound to 5.6659/6726 from 5.7050/7145.
The ringgit also advanced against most ASEAN currencies. It climbed to 3.2763/2805 against the Singapore dollar from 3.2820/2877, to 258.3/258.7 against the Indonesian rupiah from 260.2/260.8, and to 12.9387/9592 against the Thai baht from 12.9760/13.0032.
Nonetheless, the ringgit slipped against the Philippine peso, ending at 7.42/7.43 compared to 7.37/7.39 the previous week. -- August 23, 2025
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