Ringgit inches higher as softer U.S. yields weigh on dollar

THE ringgit edged marginally higher against the US dollar in early Thursday trade, supported by a softer greenback as declining US Treasury yields fuelled expectations of a more accommodative stance from the Federal Reserve.

At 8am, the local currency traded at 4.0450/0550 against the dollar, slightly firmer than Wednesday’s close of 4.0465/0525.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the ringgit’s mild uptick reflected a weaker overnight tone in the US dollar as Treasury yields eased.

He told Bernama that the pullback in the greenback from recent highs, particularly against the Japanese yen, suggested markets were gradually unwinding defensive dollar positions rather than shifting into a full risk-off environment.

At the same time, firmer oil and gold prices provided additional external support for the ringgit, he said. Higher energy prices tend to improve Malaysia’s terms of trade, while rising gold prices point to easing US real yields, which generally favour emerging market currencies.

“As such, the combination of lower US yields and commodity support suggests the ringgit’s gains are being driven by macro-financial fundamentals rather than speculative flows,” he said.

Mohd Sedek expects the ringgit to remain range-bound with a mild upward bias during the day, with near-term direction guided mainly by movements in US yields and intraday fluctuations in the US dollar.

Against major currencies, the ringgit traded mostly higher at the opening, although it weakened against the Japanese yen to 2.5527/5593 from 2.5488/5526 at Wednesday’s close.

The local currency strengthened against the euro to 4.7104/7220 from 4.7146/7216 and edged higher versus the British pound to 5.4361/4495 from 5.4446/4526.

The ringgit also advanced against most ASEAN currencies. It rose against the Singapore dollar to 3.1410/1493 from 3.1432/1481 and strengthened against the Thai baht to 12.8437/8841 from 12.8714/8958.

It was slightly firmer against the Indonesian rupiah at 239.8/240.5 compared with 239.9/240.3 previously, and against the Philippine peso at 6.80/6.82 from 6.81/6.82. - January 15, 2026