KUALA LUMPUR, 21 November 2025 — The Malaysian ringgit began Friday’s trading session on a firmer note, strengthening against the US dollar and a broad set of major and regional currencies as markets reassessed the timing and scale of potential US interest-rate cuts.
By 8 a.m., the ringgit traded at RM4.1515/1645 against the greenback, compared to its previous close of RM4.1565/1645. It also appreciated against the Japanese yen (¥2.6377/6461), the euro (RM4.7879/8029) and the British pound (RM5.4314/4484) at the same snapshot in time.
Bank Muamalat’s chief economist, Dr Mohd Afzanizam Abdul Rashid, noted the stronger US non-farm-payrolls print of 119,000 new jobs in September signalled a still-resilient US labour market, a key reason the Federal Reserve may delay rate cuts.
“While the stronger labour reading should keep the US dollar supported in the near term, the ringgit’s early gains suggest markets are continuing to reassess the timing and scale of potential US rate cuts in 2026, especially with a new Fed chair to be appointed in May,” Dr Afzanizam said.
What’s Behind the Gains?
The ringgit’s uptick comes amid a broader recalibration of interest-rate expectations:
- The stronger US labour market data reduced the likelihood of a near-term rate cut by the Federal Reserve, supporting the US dollar, yet the ringgit gained, suggesting domestic or regional factors were at play.
- Technical support levels around RM4.15-RM4.17 were identified, reinforcing the notion that the ringgit may be seeing short-term strength.
- Gains against ASEAN currencies — including the Singapore dollar, Thai baht, Indonesian rupiah and Philippine peso, reflect broader regional currency dynamics and investor sentiment.
Implications for Malaysia and Regional Investors
For Malaysia’s economy and investors, the ringgit’s firm start signifies a few key insights:
- A stronger currency helps reduce inflationary pressure from imported goods, which can benefit consumers and corporates with foreign-currency exposures.
- Export-oriented industries may face marginal headwinds from currency appreciation, meaning cost management and productivity remain important.
- Regional investors and fund managers may view the ringgit’s strength as a sign of relative resilience versus other Southeast-Asian currencies, influencing portfolio allocations.
What to Watch Next
- Developments in upcoming US data releases (inflation, employment) which could further influence the US dollar and ringgit trajectories.
- Malaysia’s domestic economic indicators, trade, inflation and capital flows, which will affect ringgit fundamentals.
- Whether the ringgit maintains support around the RM4.15-4.17 range or breaks out into weaker/stronger territory.
