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THE ringgit opened higher against a softer US dollar on Tuesday, extending its recent momentum as market unease grows over the independence of the United States Federal Reserve following continued pressure on its monetary policy stance.
At 8am, the local currency strengthened to 4.0580/0685 against the greenback from Monday’s close of 4.0605/0660.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said concerns surrounding the US Federal Reserve’s independence have taken a toll on the US dollar, with the US Dollar Index falling 0.24 per cent to 98.894 points.
As a result, the ringgit gained 0.24 per cent against the greenback yesterday.
“The constant attack by the Trump administration on the US Fed has obscured how traders and investors would read the direction of the US dollar.
It appears that the crux of the tension stems from the Fed’s reluctance to ease its monetary policy.
“As such, this seems to benefit the local unit in the short term, with the ringgit versus US dollar expected to range between RM4.05 to RM4.06 today,” he told Bernama.
At the opening, the ringgit traded mostly higher against a basket of major currencies. It strengthened against the Japanese yen to 2.5677/5747 from 2.5717/5754 at Monday’s close and edged up versus the euro to 4.7345/7467 from 4.7435/7499 previously. However, it weakened slightly against the British pound to 5.4641/4782 from 5.4630/4704.
The local currency also performed well against most ASEAN currencies. It was unchanged against the Philippine peso at 6.85/6.87 compared with yesterday’s close of 6.85/6.86.
The ringgit inched higher against the Indonesian rupiah to 240.7/241.4 from 240.9/241.3, strengthened against the Singapore dollar to 3.1558/1644 from 3.1567/1613, and rose versus the Thai baht to 12.9852/13.0267 from 12.9961/13.0195 previously. - January 13, 2026