The Malaysian ringgit strengthened against the US dollar this morning, defying a global trend towards safe-haven currencies. Analysts attribute the ringgit's gain to its oversold position and Bank Negara Malaysia's (BNM) reluctance to ease monetary policy, unlike some regional peers.
The ringgit opened higher against the US dollar this morning, despite rising demand for the safe-haven currency amid ongoing global economic uncertainties and heightened geopolitical risks, an analyst said. At 8 am, the ringgit strengthened to 4.4575/4700 against the greenback, compared with Monday’s close of 4.4645/4700. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is currently in an oversold position.
'This may entice traders to accumulate the ringgit, given that Bank Negara Malaysia (BNM) is not inclined to ease its monetary policy stance next year. 'This contrasts with regional peers such as Indonesia, the Philippines, and Thailand, which have already begun their interest rate cut cycles this year,” he told Bernama. On the external front, Mohd Afzanizam said conditions currently favour the US dollar, as the US Federal Reserve (Fed) is expected to ease monetary policy more gradually in 2025. He said the Fed will likely maintain the Federal Funds Rate (FFR) above its neutral level-a rate neither expansionary nor contractionary for the economy. 'Based on the Fed’s latest forecast, the neutral rate hovers around 3.00 per cent. A further 50 basis points cut could leave the FFR at 4.00 per cent in 2025, which suggests monetary policy will remain restrictive.Against other major currencies, the ringgit traded higher, except against the Japanese yen. It appreciated against the British pound to 5.5933/6090 from 5.6146/6215 at Monday’s close and strengthened vis-à-vis the euro to 4.6385/6515 from 4.6583/6640 previously. However, it marginally depreciated against the Japanese yen to 2.8388/8471 from 2.8278/8314 at Monday’s close.It improved against the Singapore dollar to 3.2788/2882 from 3.2890/2935 previously and rose against the Indonesian rupiah to 276.1/277.0 from 276.5/277.0. The local note gained against the Thai baht to 13.0428/0905 from 13
Ringgit US Dollar Global Economic Uncertainties Bank Negara Malaysia Monetary Policy
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ringgit Opens Higher Against US Dollar Ahead of Expected Rate CutThe Malaysian ringgit appreciated against the US dollar on Wednesday, anticipating a potential interest rate decrease by the Federal Reserve. However, the positive movement might be tempered by robust US retail sales data, which could bolster demand for the greenback.
Read more »
Ringgit Opens Higher Against US Dollar Despite Cautious Market SentimentThe ringgit appreciated against the US dollar on Wednesday, but a cautious market outlook persists due to strong US retail sales data.
Read more »
Ringgit opens higher against greenbackThe ringgit opened higher against the US dollar on Wednesday ahead of an expected interest rate cut later today in the United States.
Read more »
Ringgit Opens Slightly Higher Against US Dollar Despite Strong DXYThe Malaysian ringgit showed marginal gains against the US dollar on Tuesday, defying a strengthening US Dollar Index (DXY). Despite the DXY reaching a two-year high, improved buying sentiment for the ringgit supported its slight appreciation.
Read more »
Ringgit Opens Marginally Higher Against US DollarThe Malaysian ringgit gained slightly against the US dollar on Tuesday, despite a rise in the US Dollar Index. While the US dollar strengthened, the ringgit benefitted from improved buying sentiment and appreciation against several major currencies.
Read more »
Ringgit Opens Slightly Higher Against US DollarThe Malaysian ringgit started Thursday with a slight increase against the US dollar, influenced by the stabilizing yuan and expectations for economic growth.
Read more »