With the US economy on a weaker trajectory, as shown by GDP and consumption data, this could help the ringgit, says an analyst.
At 8 am, the local currency strengthened to 3.9750/3.9935 against the greenback from Thursday’s close of 3.9795/3.9845.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.32% to 98.819 points. In contrast, the two- and 10-year US Treasury yields fell by two basis points to 3.77% and 4.28%.
He noted that the US gross domestic product for the fourth quarter of 2025 (4Q2025) fell to 0.5% from consensus estimates of 0.7%, down from 4.4% in 3Q2025.
“This suggests the US economy is on a weaker trajectory, and the Core Personal Consumption Expenditures (PCE) inflation, which moderated to 3% in February from 3.1% previously, suggests the Federal Reserve might cut interest rates at some point this year.
“As such, this could be positive for the ringgit. Nonetheless, guarded sentiment over the ceasefire would keep a lid on the pace of ringgit appreciation,” he told Bernama.
Meanwhile, the ringgit opened mostly lower against a basket of major currencies.
It strengthened against the Japanese yen to 2.4981/2.5099 from 2.5028/2.5061 at Thursday’s close, but was marginally lower against the euro at 4.6468/4.6684 from 4.6457/4.6515 and eased versus the British pound to 5.3372/5.3621 from 5.3337/5.3404.
The local currency traded mixed against Asean currencies.
It fell against the Singapore dollar to 3.1216/3.1366 from 3.1204/3.1246 at yesterday’s close, but appreciated against the Thai baht to 12.3859/12.4517 from 12.3976/12.4201.
It was little changed against the Philippine peso at 6.65/6.69 from 6.66/6.67 previously, while nearly flat against the Indonesian rupiah at 232.6/233.7 compared with 232.8/233.2. - FMT
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