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THE ringgit opened firmer against the US dollar on Wednesday morning, buoyed by weaker-than-expected US economic data that continued to weigh on the greenback.
At 8am, the local currency traded at 3.9485/3.9500 against the US dollar, its strongest level since May 2018, compared with Tuesday’s closing range of 3.9500/3.9555.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index fell sharply by 1.32 per cent to 95.759 points, as recent economic indicators reinforced market expectations of monetary easing by the Federal Reserve later this year.
“The US Conference Board’s Consumer Confidence Index fell more than expected to 84.5 points in January, below the consensus estimate of 90.6 points,” he said.
Afzanizam noted that growing concerns among Americans over the rising cost of living and weakening job prospects point to a continued moderation in consumer spending, a key driver of the US economy.
“In addition, the Japanese yen has continued to strengthen amid lingering talk of possible coordinated intervention by the Japanese government and the US Federal Reserve,” he said.
He added that sustained weakness in the US dollar could see the ringgit break below the 3.95 level in the near term.
However, the local currency opened mixed against other major currencies and regional peers.
The ringgit weakened against the British pound to 5.4592/5.4613 from 5.4103/5.4178 at Tuesday’s close, slipped against the euro to 4.7473/4.7491 from 4.6958/4.7023, and eased versus the Japanese yen to 2.5890/2.5902 from 2.5691/2.5730.
Against regional currencies, the ringgit softened versus the Singapore dollar to 3.1317/3.1332 from 3.1174/3.1219 and declined against the Thai baht to 12.7639/12.7790 from 12.7247/12.7478. It edged higher against the Indonesian rupiah to 235.4/235.6 from 235.5/236.0, while remaining flat against the Philippine peso at 6.68/6.69 compared with 6.68/6.70 previously. - January 28, 2026