Business

Ringgit strengthens on back of U.S.-Malaysia trade deals and market optimism

The recent trade deals are expected to provide further support to the local currency as Malaysia maintains strong diplomatic and economic ties with its trading partners

Updated 9 months ago · Published on 28 Oct 2025 9:09AM

Ringgit strengthens on back of U.S.-Malaysia trade deals and market optimism
“In light of the market optimism, the ringgit could make another attempt to break the RM4.20 level today,” Afzanizam says - October 28, 2025

THE ringgit continued its upward trajectory against the US dollar on Tuesday, bolstered by renewed investor confidence following a series of trade agreements between the United States and Malaysia. At 8 a.m., the ringgit rose to 4.2040/2140 per US dollar, up from 4.2085/2135 at Monday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the recent trade deals are expected to provide further support to the local currency as Malaysia maintains strong diplomatic and economic ties with its trading partners.

“The nation’s foreign and trade policies are consistently geared towards promoting greater global integration, especially in areas related to the supply chain,” he said.

Meanwhile, the US dollar index weakened by 0.17% to 98.783 points amid growing optimism over a potential breakthrough in trade talks between the United States and China ahead of a scheduled meeting between the two leaders on Thursday. Market sentiment was further buoyed by expectations of a 25-basis-point interest rate cut by the US Federal Reserve on Wednesday, putting additional pressure on the greenback.

“In light of the market optimism, the ringgit could make another attempt to break the RM4.20 level today,” Mohd Afzanizam added.

The ringgit also opened higher against most major currencies. It strengthened against the Japanese yen to 2.7538/7606 from 2.7550/7582 and rose against the British pound to 5.6077/6211 from 5.6158/6225, though it slipped slightly against the euro to 4.8981/9097 from 4.8974/9032.

Among ASEAN currencies, the ringgit gained against most regional peers, appreciating against the Singapore dollar to 3.2433/2513 from 3.2460/2502, the Indonesian rupiah to 252.9/253.6 from 253.1/253.6, and the Philippine peso to 7.13/7.16 from 7.14/7.16. It eased marginally against the Thai baht to 12.8767/9145 from 12.8633/8837. - October 28, 2025

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