THE ringgit extended its gains to open higher against the US dollar on Friday, buoyed by increased investor appetite for emerging market currencies amid growing expectations of a US interest rate cut next month.
At 8am, the local note rose to 4.2040/2260 against the greenback from Thursday’s close of 4.2140/2195.
Bernama reported Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying that the US Dollar Index (DXY) slipped 0.29 per cent to 97.897, as speculation over a rate cut by the US Federal Reserve continued to build.
“The US Federal Reserve (Fed) official Christopher Waller, who dissented from the Federal Open Market Committee’s (FOMC) decision to hold rates steady last month, has reiterated his view that the Fed should reduce the funds rate at the next meeting in September, as signs of a weakening labour market become increasingly clear,” he said.
Dr Afzanizam added that the second estimate of US gross domestic product (GDP) growth for the second quarter came in stronger at 3.3 per cent, up from the earlier estimate of 3.0 per cent.
However, he pointed out that the upward revision was largely driven by a steep 29.8 per cent decline in imports, which boosted the contribution from net exports.
Investors are now awaiting the release of the US Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, due later today.
The ringgit also posted mixed performance against major currencies. It edged lower against the euro to 4.9099/9355 from 4.9089/9153, but strengthened against the Japanese yen at 2.8632/8784 from 2.8639/8679, and improved against the British pound to 5.6788/7085 from 5.6893/6967.
Among ASEAN currencies, the ringgit strengthened against the Singapore dollar to 3.2777/2951 from 3.2809/2854, rose against the Philippine peso to 7.36/7.40 from 7.38/7.39, and gained slightly on the Indonesian rupiah to 257.0/258.5 from 257.6/258.1. It, however, dipped against the Thai baht to 13.0207/0962 from 13.0142/0364. - August 29, 2025
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