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THE ringgit opened stronger against the US dollar on Friday, buoyed by growing expectations of an interest rate cut by the US Federal Reserve and heightened global risk aversion.
At 8.00am, the local currency appreciated to 4.2160/2335 against the greenback, up from 4.2275/2300 at Thursday’s close.
Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, said market sentiment has shifted to a risk-off mode, with investors seeking safer assets as US Treasury yields fall and gold prices continue to rise.
“These developments are being compounded by the ongoing US government shutdown, which has delayed key economic data releases needed for informed monetary policy decisions,” he told Bernama.
He added that the US Dollar Index had slipped 0.46 per cent to 98.336, further pressuring the greenback.
“With the US Federal Reserve expected to cut interest rates at the upcoming Federal Open Market Committee meeting at the end of this month, the ringgit may see further appreciation.
“Additionally, the latest issues surrounding US lenders warrant closer scrutiny to assess how they might evolve and affect credit markets. Again, such news can be dollar-negative,” he noted.
At the same time, the ringgit opened mixed against other major currencies. It firmed against the British pound to 5.6663/6898 from 5.6792/6826 but weakened against the euro to 4.9306/9511 from 4.9284/9313, and slipped against the Japanese yen to 2.8073/8191 from 2.7943/7961.
Regionally, the ringgit performed better against most ASEAN currencies. It gained against the Singapore dollar to 3.2601/2739, strengthened versus the Indonesian rupiah to 254.2/255.4, appreciated against the Philippine peso to 7.25/7.28, and rose vis-à-vis the Thai baht to 12.9623/13.0229. - October 17, 2025