Business

Ringgit opens stronger against U.S. dollar amid expectations of softer Fed policy

National currency buoyed by easing US-China tensions and positive global market sentiment

Updated 11 months ago · Published on 17 Sep 2025 9:24AM

Ringgit opens stronger against U.S. dollar amid expectations of softer Fed policy
Ringgit benefited from “resilient global equity markets” and renewed optimism over the US-China relationship - September 17, 2025

THE ringgit opened firmer against the US dollar on Monday, supported by a softer US interest rate outlook and signs of easing trade tensions between the United States and China, analysts said.

At 8am, the local currency stood at 4.1840/4.2140 against the greenback, strengthening from last Friday’s close of 4.1975/4.2080.

Bernama reported Stephen Innes, managing director of SPI Asset Management, saying the ringgit benefited from “resilient global equity markets” and renewed optimism over the US-China relationship, which have both helped underpin sentiment for trade-sensitive currencies.

“For a trade-sensitive currency like the ringgit, the combination of softer US yields, resilient risk appetite, and easing geopolitical overhang between the US and China is supportive,” he said.

Markets responded positively to the announcement of a framework agreement between Washington and Beijing regarding TikTok, which would see the Chinese-owned platform placed under US-controlled ownership.

Innes noted that the agreement was perceived less as a technology regulation and more as a symbolic gesture pointing to cooling tensions in broader trade relations, including tariffs and reciprocal trade restrictions.

Despite the firmer performance against the US dollar, the ringgit traded weaker against several major currencies.

It slipped against the Japanese yen to 2.8591/2.8798 from Friday’s 2.8373/2.8446, declined to 5.7133/5.7542 against the British pound from 5.6864/5.7006, and eased to 4.9660/5.0016 versus the euro from 4.9203/4.9326.

Performance against regional ASEAN currencies was mixed.

The ringgit strengthened to 13.2092/13.3114 against the Thai baht from 13.2317/13.2703, and edged up against the Indonesian rupiah to 254.4/256.4 from 256.3/257.0.

However, it weakened to 3.2800/3.3041 against the Singapore dollar compared to 3.2719/3.2803 previously, and was largely unchanged against the Philippine peso at 7.35/7.41 from 7.35/7.37. -September 17, 2025

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