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THE ringgit opened firmer against the US dollar on Wednesday, buoyed by renewed expectations of a US interest rate cut in December after a slew of weaker economic data weighed on the greenback.
At 8 a.m., the local currency stood at 4.1250/1365 against the dollar, strengthening from Tuesday’s close of 4.1300/1345.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index had slipped below the symbolic 100-point mark to 99.809, driven by underwhelming economic readings.
September US retail sales rose by just 0.2 per cent month-on-month, well short of the 0.6 per cent forecast. The Conference Board’s Consumer Confidence Index also weakened, falling to 88.7 in November compared with market expectations of 93.5.
“American households remain concerned about the cost of living amid higher import tariffs,” Mohd Afzanizam told Bernama.
US Treasury yields softened accordingly, with both the two-year and ten-year benchmarks declining by three basis points to 3.43 per cent and 4.01 per cent.
Analysts expect the ringgit to trade within the RM4.12 to RM4.13 range as investors increasingly position for an imminent Federal Reserve pivot.
The ringgit’s performance against other major currencies was mixed. It firmed against the Japanese yen to 2.6408/6485 from 2.6420/6451, but eased against the euro at 4.7706/7839 compared with 4.7635/7687, and slipped to 5.4285/4436 against the British pound from 5.4235/4294.
Regionally, the ringgit posted broad gains. It strengthened against the Philippine peso to 7.00/7.02 from 7.01/7.02, rose against the Singapore dollar to 3.1684/1775 from 3.1708/1745, firmed to 12.7717/8184 versus the Thai baht from 12.7793/7999, and improved against the Indonesian rupiah to 247.6/248.4 from 247.9/248.3.
The early advances reflect growing investor optimism that weaker US data may prompt the Federal Reserve to ease monetary policy later this year, lending support to regional currencies such as the ringgit. - November 26, 2025