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THE ringgit opened stronger against the US dollar on Wednesday, buoyed by cautious sentiment surrounding the US Federal Reserve’s upcoming interest rate decision.
The local currency advanced to 4.1570/1705 against the greenback amid mixed signals from US policymakers and softer-than-expected labour market data.
The ringgit strengthened to 4.1570/1705 at 8am, improving from Tuesday’s close of 4.1605/1660, as investors adjusted positions ahead of December’s Federal Reserve policy meeting.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index had slipped by 0.04 per cent to 99.550 points, reflecting growing uncertainty over the Fed’s next move.
He said the latest US labour market reading, the first after the 41-day US government shutdown, pointed to a moderating trend.
"The initial jobless claims (IJC) rose to 232,000 compared with consensus estimates of 223,000 and the prior week's level of 219,000.
"The majority of the US Fed officials appear mixed on what they will decide next when it comes to monetary policy in December," he told Bernama.
Mohd Afzanizam added that the ringgit had recently corrected after touching the RM4.12–RM4.13 range last week, closing weaker on Tuesday.
"We expect the ringgit to stabilise around RM4.14 to RM4.16 today as some technical indicators have gone into the neutral zone," he said.
At the opening bell, the ringgit was broadly firmer against major currencies. It gained against the yen at 2.6726/6815 from 2.6800/6838, strengthened vis-à-vis the euro to 4.8138/8294 from 4.8216/8280 and rose against the British pound to 5.4652/4830 from 5.4719/4791.
Performance was mixed against regional currencies. The ringgit edged higher against the Indonesian rupiah to 248.1/249.0 from 248.3/248.7 and firmed against the Philippine peso to 7.04/7.07 from 7.05/7.06. It eased against the Thai baht to 12.8330/8838 from 12.8252/8481 and slipped marginally versus the Singapore dollar to 3.1940/2049 from 3.1938/1982. - November 19, 2025