THE ringgit opened firmer on Thursday, gaining ground against the US dollar and several major global currencies, as markets priced in the likelihood of interest rate cuts by the United States Federal Reserve.
At 8.00am, the local currency was quoted at 4.2085/2300 against the greenback, strengthening from Wednesday’s close of 4.2185/2220.
Bank Muamalat Malaysia Bhd Chief economist Dr Mohd Afzanizam Abdul Rashid attributed the ringgit’s performance to a lower-than-expected reading of the US Producer Price Index (PPI), which eased to 2.6 per cent in August — well below market expectations of 3.3 per cent.
“This has strengthened the case for a Federal Reserve rate cut next week,” he told Bernama.
Afzanizam added that investors were also awaiting the release of the US Consumer Price Index (CPI) data, expected later this evening, which would serve as another critical indicator ahead of the Federal Open Market Committee (FOMC) policy meeting next week.
“Consensus estimates show CPI rising to 2.9 per cent in August from 2.7 per cent. On that note, the dollar-ringgit is expected to range between RM4.20 and RM4.22 today as traders remain cautious ahead of the FOMC meeting,” he said
The ringgit also advanced against other major currencies. It strengthened to 2.8555/8703 against the Japanese yen from 2.8614/8639 previously, appreciated to 5.6949/7240 against the British pound from 5.7127/7174, and rose to 4.9244/9495 against the euro from 4.9416/9457.
Within the ASEAN region, the ringgit saw further gains, trading at 3.2820/2993 versus the Singapore dollar from 3.2883/2912, and inching up to 13.2447/3199 against the Thai baht from 13.2699/2872.
It remained relatively stable against the Indonesian rupiah at 255.5/256.9 compared to 256.1/256.4 previously, and was flat against the Philippine peso at 7.37/7.41 from 7.38/7.39. - September 11, 2025
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