Ringgit Performance Against US Dollar
The ringgit closed slightly lower against the US dollar on Thursday due to the elevated US Dollar Index (DXY). Investors remain cautious ahead of a speech by the US Federal Reserve (Fed) Chair, amid uncertainty over the federal government shutdown in the United States. At 6 pm, the local note eased to 4.2145/2185 against the greenback from Wednesday’s close of 4.2140/2195.
Factors Influencing Ringgit Value
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that Fed Chairman Jerome Powell’s speech could shed more light on how the US central bank sees the risk to growth following the ongoing US government shutdown. As a result, the USD/MYR maintained its narrow range trade of between RM4.21 and RM4.22. Regional currencies were also mixed, indicating a lack of conviction among traders.
Budget 2026 and Ringgit Movement
Dr Mohd Afzanizam Abdul Rashid noted that Budget 2026 should help steer the ringgit, as the government is expected to maintain its stance to reduce the budget gap lower for next year. This could potentially influence the movement of the ringgit against other currencies.
Performance Against Major Currencies
At the close, the ringgit was mostly lower against a basket of major currencies. It fell versus the euro to 4.8988/9044 from 4.8941/9005 at Wednesday’s close and weakened vis-a-vis the Japanese yen to 2.7625/7653 from 2.7559/7596. However, the ringgit rose against the British pound to 5.6420/6473 from 5.6501/6575.
ASEAN Currency Performance
The ringgit was mostly mixed against ASEAN currencies. It advanced versus the Thai baht to 12.9323/9505 from 12.9506/9739 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 3.2534/2568 from 3.2503/2548 previously, and was little changed vis-a-vis the Indonesian rupiah at 254.3/254.7 from 254.2/254.7.
Conclusion
In conclusion, the ringgit’s performance against the US dollar and other major currencies was influenced by the elevated US Dollar Index and the uncertainty surrounding the US government shutdown. The upcoming speech by the US Federal Reserve Chair and the announcement of Budget 2026 are expected to provide more clarity on the ringgit’s movement. As the ringgit remains volatile, investors and traders will be closely monitoring these events to make informed decisions.
