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THE ringgit strengthened further against the U.S. dollar in early trade on Wednesday, extending recent gains to hover around the 4.07 level, a level not seen in nearly five years, as firmer domestic sentiment combined with mixed US economic data to support the local currency.
At 8.01am, the ringgit rose to 4.0765/0935 against the greenback, compared with 4.0835/0875 at Tuesday’s close. The local currency was last at similar levels on March 3, 2021, when it ended the session at 4.0720 against the U.S. dollar.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said clarity arising from Prime Minister Datuk Seri Anwar Ibrahim’s cabinet reshuffle announced on Tuesday had boosted market confidence.
“Yesterday, the ringgit closed higher by 0.24 per cent. Today, it could remain stable as the latest U.S. data may trigger some profit-taking,” he told Bernama.
On the external front, he noted that the U.S. Dollar Index slipped 0.10 per cent to 98.215 following mixed US labour market data for November.
US non-farm payrolls rose by 64,000 in November after contracting in October, while the unemployment rate increased to 4.6 per cent amid higher labour force participation, moderating wage growth and slower retail sales, he said.
Mohd Afzanizam added that the data pointed to a mixed outlook for the US labour market, marked by more cautious consumer spending and low expectations of a U.S. interest rate cut in January, currently estimated at around 20 per cent. Most traders expect two rate cuts over the whole of 2026.
At the opening, the ringgit also traded higher against a basket of major currencies. It strengthened against the British pound to 5.4727/4955 from 5.4760/4813 at Tuesday’s close, rose against the Japanese yen to 2.6346/6457 from 2.6372/6400 and appreciated versus the euro to 4.7895/8095 from 4.8014/8061.
The local currency advanced against most regional peers as well. It improved against the Singapore dollar to 3.1620/1757 from 3.1657/1691, edged up against the Thai baht to 12.9524/13.0147 from 12.9532/9721, was marginally firmer against the Indonesian rupiah at 244.2/245.3 from 244.6/245.0 and inched higher versus the Philippine peso to 6.93/6.97 from 6.95/6.96. - December 17, 2025