THE ringgit opened higher against the US dollar this morning, as global market sentiment shifted in response to escalating trade tensions between the United States and China.
At 8 am, the local currency stood at 4.2220/2430 against the greenback, up from Wednesday’s close of 4.2305/2355.
Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, attributed the ringgit’s strength to a retreat in the US dollar, which saw the US Dollar Index (DXY) fall by 0.26 per cent to 98.793 points.
“The US Dollar Index (DXY) declined by 0.26 per cent to 98.793 points, as the escalating trade conflict is expected to reinforce the case for a potential interest rate cut by the US Federal Reserve,” he told Bernama.
“In light of this, the ringgit is likely to remain resilient, with the USD/MYR exchange rate expected to hover between RM4.22 and RM4.23,” he added.
Despite its gains against the US dollar, the ringgit was mostly weaker against a basket of major currencies. It appreciated slightly against the euro to 4.9165/9410 from 4.9213/9272 but eased against the British pound to 5.6579/6860 from 5.6469/6535 and slipped against the Japanese yen to 2.7957/8097 from 2.7948/7983.
Regionally, the ringgit performed better across most ASEAN currencies. It rose against the Thai baht to 12.9708/13.0425 from 12.9933/13.0151, strengthened against the Singapore dollar to 3.2585/2749 from 3.2648/2689, gained against the Indonesian rupiah to 254.7/256.0 from 255.2/255.6, and appreciated against the Philippine peso to 7.27/7.31 from 7.29/7.30. - October 16, 2025
