Ringgit opens firmer against US dollar, major currencies

The local currency strengthens to 4.0550/4.0680, supported by stable regional foreign exchange conditions.

KUALA LUMPUR:

 The ringgit opened firmer against the US dollar and major currencies on Thursday, supported by stable regional foreign exchange conditions, despite firmer US economic data overnight.

At 8am, the local currency strengthened to 4.0550/4.0680 against the greenback, compared with Wednesday’s close of 4.0560/4.0610.

IPPFA director of investment strategy and country economist Sedek Jantan said that even as US economic data came in firmer, particularly the Institute of Supply Management (ISM) Services Index, the Bloomberg Asia Dollar Index remained broadly flat, indicating no meaningful risk-off shift away from Asian currencies.

The US ISM Services Sector Purchasing Managers’ Index (PMI) rose to a 14-month high, with the services sector remaining in expansion territory for a third straight month in December. The index increased to 54.4 in December 2025 from 52.6 in November 2025, indicating an acceleration in economic activity.

“At the macro level, the environment remains supportive for the ringgit. US long-end yields have edged lower, while Brent crude has softened as the Venezuela-related risk premium continues to unwind, easing global inflation and energy cost pressures,” Sedek noted.

He said that, for Malaysia, lower oil prices reduce imported inflation and subsidy leakage, while softer US yields narrow the dollar’s carry advantage.

“As a result, current price action in USD/MYR reflects short-term dollar positioning rather than capital outflows, keeping the ringgit broadly stable with a mildly constructive bias through the session,” he added.

At the open, the ringgit traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.5876/2.5960 from 2.5920/2.5954 on Wednesday, gained against the euro to 4.7350/4.7502 from 4.7394/4.7453, and rose against the British pound to 5.4572/5.4747 from 5.4732/5.4799 previously.

The local currency also traded mostly higher against its Asean peers. It edged up against the Indonesian rupiah to 241.6/242.5 from 241.7/242.1 and strengthened against the Singapore dollar to 3.1613/3.1717 from 3.1641/3.1682.

The ringgit also firmed against the Thai baht to 12.9391/12.9906 from 12.9630/12.9852, while it was unchanged against the Philippine peso at 6.83/6.86 from 6.83/6.84. - FMT