THE ringgit opened stronger against the US dollar on Tuesday, as growing expectations of an interest rate cut by the US Federal Reserve continued to place pressure on the greenback.
At 8am, the local currency stood at 4.2070/2275 against the US dollar, an improvement from Monday’s close of 4.2165/2205.
Bernam cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying the US Dollar Index (DXY) remained under pressure following weaker-than-expected labour market data, fuelling market sentiment that the Fed may act as early as next week.
“The key message is that the labour market is weak, and the Fed is seen as behind the curve in cutting interest rates,” he told local media.
He also noted that economists are closely watching the Quarterly Census of Employment and Wages (QCEW) from the US Bureau of Labour Statistics, with forecasts pointing to a possible downward revision in job growth figures.
On the domestic front, Mohd Afzanizam said the ringgit is expected to retain its appreciating bias in the short term, trading around the 4.21 to 4.22 range against the US dollar.
Despite gains against the greenback, the ringgit was slightly weaker against several other major currencies in early trade. It slipped to 2.8545/8686 against the Japanese yen from 2.8536/8565 on Monday, eased to 5.7009/7287 against the British pound from 5.6956/7011, and fell to 4.9508/9749 against the euro from 4.9430/9477.
Against regional ASEAN currencies, the ringgit posted modest gains. It strengthened to 257.9/259.3 against the Indonesian rupiah from 258.5/258.8, rose to 3.2795/2958 against the Singapore dollar from 3.2831/2865, and edged up to 7.42/7.46 against the Philippine peso from 7.43/7.44.
However, the ringgit weakened against the Thai baht, slipping to 13.2734/3452 from Monday’s close of 13.2299/2491. - Sept 9, 2025
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