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THE ringgit opened at its strongest level in nearly five years against the US dollar, touching the 4.07 mark, despite a firmer US Dollar Index (DXY), as investors continued to weigh the Federal Reserve’s policy trajectory.
At 8am, the local currency strengthened to 4.0795/4.0915 against the greenback, compared with 4.0855/4.0940 recorded at yesterday’s close. The last time the ringgit approached such levels was on 3 March 2021, when it ended the trading session at 4.0720 against the U.S. dollar.
Bank Muamalat Malaysia Bhd’s chief economist, Mohd Afzanizam Abdul Rashid, observed that the US Dollar Index had climbed 0.25 per cent to 98.389 points, following comments from Federal Reserve officials indicating a cautious approach towards rate cuts.
He highlighted that Fed governor Christopher Waller suggested the current policy rate remains 50 to 100 basis points above its neutral level, signalling that the central bank has leeway to reduce rates further if necessary.
Waller reportedly stated that there is no urgency to adjust policy immediately, as the labour market is weakening gradually.
“Yesterday, the ringgit closed 0.10% lower against the US dollar. Therefore, expect the ringgit to exhibit range-bound trade between RM4.08 and RM4.09 today,” Afzanizam told Bernama.
While the ringgit opened stronger against the US dollar, it was generally weaker against other major currencies. The local unit slipped against the British pound to 5.4555/5.4716 from Wednesday’s 5.4439/5.4553 close, and declined against the euro at 4.7897/4.8038 from 4.7866/4.7965.
Conversely, the ringgit gained ground against the Japanese yen, rising to 2.6236/2.6315 from 2.6267/2.6321. - December 18, 2025