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THE ringgit opened higher against the U.S. dollar and other major currencies on Monday, lifted by investor confidence in the country’s fiscal outlook and hopes of potential monetary easing in the United States.
By 8am, the ringgit had firmed to 4.0730/4.0840 against the U.S. dollar, slightly stronger than Friday’s close of 4.0740/4.0785.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama today that the combination of Malaysia’s fiscal improvements and expectations of looser U.S. monetary policy had contributed to the local note’s appreciation.
“The ringgit has performed extremely well against the U.S. dollar and other regional currencies in the past few weeks.
“Such dynamics will continue to dictate the U.S. dollar-ringgit pairing today,” Afzanizam said, adding that the currency appears to be in an overbought condition.
He noted that investors may be inclined to realise profits, and therefore, the U.S. dollar-ringgit pair is expected to trade within a narrow range today.
The ringgit also opened firmer against a basket of major currencies. It rose against the Japanese yen to 2.5839/2.5912 from 2.5909/2.5940, strengthened against the British pound to 5.4489/5.4636 from 5.4514/5.4574, and inched up against the euro to 4.7691/4.7820 from 4.7715/4.7767.
Against regional peers, the local currency recorded mostly gains.
It appreciated versus the Singapore dollar to 3.1505/3.1595 from 3.1515/3.1553, edged higher against the Indonesian rupiah to 243.1/243.9 from 243.2/243.6, and gained against the Philippine peso to 6.93/6.96 from 6.94/6.95. The ringgit, however, eased slightly against the Thai baht to 12.9643/13.0060 from 12.9428/12.9620.
Market analysts highlighted that Malaysia’s fiscal prudence and external factors, such as U.S. monetary policy expectations, continue to influence trading sentiment, providing support to the ringgit despite its current overbought level. - December 22, 2025