Introduction to Currency Exchange
The value of the Malaysian ringgit has experienced a slight decline against the US dollar due to the elevated US Federal Reserve (Fed) chairman Jerome Powell’s upcoming speech. This event has led to investors being cautious, particularly with the uncertainty surrounding the US government shutdown.
Current Market Situation
The US Dollar Index (DXY) has remained high, causing the ringgit to close slightly lower against the US dollar. According to Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid, the speech by Fed chairman Jerome Powell will provide more insight into how the US central bank views the risks to growth following the ongoing US government shutdown. As a result, the US dollar/ringgit has maintained a narrow range trade of between RM4.21 and RM4.22.
Regional Currency Performance
Regional currencies have shown mixed results, indicating a lack of conviction among traders. This uncertainty has led to a wait-and-see approach, with many awaiting the outcome of Budget 2026. The government is expected to maintain its stance on reducing the budget gap for next year, which could help steer the ringgit.
Ringgit Performance Against Major Currencies
At 6pm, the local currency eased to 4.2145/4.2185 against the US dollar from yesterday’s close of 4.2140/4.2195. The ringgit was mostly lower against a basket of major currencies, including the euro, Japanese yen, and British pound. However, it rose against the British pound to 5.6420/5.6473 from 5.6501/5.6575.
Ringgit Performance Against Asean Currencies
The ringgit was mostly mixed against Asean currencies. It advanced against the Thai baht to 12.9323/12.9505 from 12.9506/12.9739 at yesterday’s close and rose against the Philippine peso to 7.23/7.24 from 7.27/7.28. However, the ringgit slipped against the Singapore dollar to 3.2534/3.2568 from 3.2503/3.2548 previously.
Conclusion
In conclusion, the Malaysian ringgit has experienced a slight decline against the US dollar due to the uncertainty surrounding the US government shutdown and the upcoming speech by Fed chairman Jerome Powell. The ringgit’s performance against major and Asean currencies has been mixed, with some declines and some gains. As investors await the outcome of Budget 2026, the ringgit is expected to be steered by the government’s stance on reducing the budget gap for next year.
