The Malaysian Ringgit opened higher against the US Dollar (USD) on Wednesday, supported by the weakness in major currencies following signals from the US Federal Reserve (Fed) that point toward lower interest rates.
At 8:01 a.m., the local unit rose to 4.2220/2365 against the USD, compared with 4.2305/2355 at yesterday’s close.
Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said the US Dollar Index (DXY) fell 0.20% to 99.064 points after the Fed Chair highlighted increased risks in the labor market.
“This development has strengthened expectations for a potential interest rate cut at the upcoming Federal Open Market Committee (FOMC) meeting,” he noted.
He added that the latest International Monetary Fund (IMF) projections indicate global economic growth of 3.2% in 2025, an upward revision from the July forecast. Meanwhile, trade negotiations between the US and other major economies have shown positive progress, providing greater policy clarity compared with April 2025, when markets were unprepared for shocks or uncertainties.
Dr. Mohd Afzanizam said the Ringgit is expected to perform slightly better today, with USD/MYR likely to trade between RM4.22 and RM4.23.
However, the Ringgit weakened against several other major currencies. It fell versus the Euro to 4.8988/9156 from 4.8879/8937, and against the British Pound to 5.6241/6434 from 5.6118/6184. The Ringgit also declined against the Japanese Yen to 2.7840/7938 from 2.7808/7843.
Among ASEAN currencies, the Ringgit was lower against the Thai Baht at 12.9358/9866 from 12.8975/9182 and slipped against the Singapore Dollar to 3.2514/2631 from 3.2512/2553.
The Ringgit was also less stable against the Indonesian Rupiah at 254.2/255.2 from 254.8/255.2, while remaining almost unchanged against the Philippine Peso at 7.25/7.28 from 7.26/7.27.
