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THE ringgit extended its gains against the US dollar at the opening bell on Friday, supported by growing market expectations that an extended US government shutdown could pressure the Federal Reserve into loosening monetary policy.
At 8.00 am, the local currency stood firmer at 4.2010/2150 against the greenback, compared with Thursday’s close of 4.2040/2090.
Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, said the ringgit is likely to trade within a narrow band of 4.20 to 4.22 during the day.
“Market participants expect that prolonged economic uncertainty due to the shutdown will push the Fed towards easing in the coming months. This could lower demand for the US dollar while supporting emerging market currencies like the ringgit,” he told Bernama.
He also noted that in the absence of official US economic data, due to the shutdown, traders are increasingly relying on private sector labour market surveys to assess the country’s economic direction.
Dr Mohd Afzanizam pointed to the historical impact of the longest US government shutdown, which lasted from 22 December 2018 to 25 January 2019, reducing GDP growth by an estimated 0.1 to 0.2 percentage points in subsequent quarters.
In broader trading, the ringgit also advanced against several major currencies. It rose to 4.9248/9412 versus the euro from 4.9410/9468, strengthened against the British pound to 5.6482/6671 from 5.6741/6809, and gained on the Japanese yen to 2.8543/8640 from 2.8669/8705.
The ringgit recorded mixed movements against ASEAN currencies. It appreciated against the Thai baht at 12.9409/9920 from 12.9829/13.0040 and edged up on the Singapore dollar to 3.2596/2707 from 3.2665/2707.
It remained largely steady versus the Indonesian rupiah at 253.0/254.0 from 253.2/253.6, and was unchanged against the Philippine peso at 7.23/7.26. - October 3, 2025