KUALA LUMPUR, El Sky News — The Malaysian Ringgit (MYR) started trading stronger against the US Dollar (USD) this morning, rising to RM4.1275/1380 from yesterday’s close of RM4.1300/1365, amid investor expectations that the US Federal Reserve may lower interest rates. The upbeat sentiment was also supported by stable crude oil prices and positive inflows into the Malaysian equity market, giving additional momentum to the local currency.
The Ringgit’s strength was supported by a decline in the US Dollar Index (DXY), which fell to 99.401 points, reflecting reduced demand for the US dollar. Analysts from Bank Muamalat Malaysia Bhd noted that weaker economic indicators in the US, including a contraction in manufacturing activity, have put pressure on the dollar and allowed emerging market currencies like the Ringgit to gain. In early trading, the Ringgit also strengthened against several other major currencies, including the British pound, euro, and Japanese yen, as well as ASEAN currencies, demonstrating broad support for the local currency this morning.
Market participants said that investor confidence in the Ringgit has been further boosted by expectations of continued foreign portfolio inflows, particularly into government bonds and blue-chip stocks. Economic analysts also pointed out that Malaysia’s strong trade surplus and steady foreign reserves have helped cushion the Ringgit against global market volatility.
Markets are closely watching the upcoming US monetary policy decision, which is expected to provide clearer direction for the Ringgit’s momentum in the coming sessions. Any signs of a dovish stance by the Federal Reserve could further strengthen the Ringgit, while global risk factors, including geopolitical tensions and oil price fluctuations, remain key variables affecting currency movements.
