Ringgit Firms To 4 07 Against Us Dollar On Improved Sentiments

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The local currency strengthens to 4.0765/4.0935 after the cabinet reshuffle.
KUALA LUMPUR: The ringgit strengthened against the US dollar in early trade on Wednesday, extending its recent gains to hover around the 4.07 level, its strongest showing in nearly five years, underpinned by firmer domestic and external sentiment
At 8.01am, the local currency rose to 4.0765/4.0935 versus the greenback, from 4.0835/4.0875 at Tuesday’s close. The ringgit was last at comparable levels on March 3, 2021, when it ended the session at 4.0720 against the US dollar.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Prime Minister Anwar Ibrahim’s cabinet reshuffle announced on Tuesday had provided greater clarity on policy direction and implementation, lifting market sentiment.
“Yesterday, the ringgit closed higher by 0.24%. Today, it could remain stable as the latest US data may trigger some profit-taking,” he noted.
On the external front, he said the US Dollar Index (DXY) slipped 0.10% to 98.215 following mixed US labour market data for November.
US non-farm payrolls rose by 64,000 in November after contracting in October, while the unemployment rate climbed to 4.6% amid higher labour force participation, moderating wage growth and slower retail sales, he said.
Afzanizam added that the data pointed to a mixed labour market outlook, with more cautious consumer spending and low expectations of a US interest rate cut in January, currently estimated at around 20%. Most traders expect two cuts over the whole of 2026.
At the opening, the ringgit traded firmer against a basket of major currencies.
It strengthened against the British pound to 5.4727/5.4955 from 5.4760/5.4813 at Tuesday’s close, rose versus the Japanese yen to 2.6346/2.6457 from 2.6372/2.6400 and appreciated against the euro to 4.7895/4.8095 from 4.8014/4.8061.
The local currency also advanced against most Asean peers.
It improved against the Singapore dollar to 3.1620/3.1757 from 3.1657/3.1691, edged up versus the Thai baht to 12.9524/13.0147 from 12.9532/12.9721, was marginally higher against the Indonesian rupiah at 244.2/245.3 from 244.6/245.0 and inched up versus the Philippine peso to 6.93/6.97 from 6.95/6.96. - FMT

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