KUALA LUMPUR, 24 November 2025 — The Malaysian ringgit opened slightly firmer against the US dollar this morning, as markets digested conflicting signals from the Federal Reserve (Fed) that have left currency traders cautious.
At 8 a.m., the ringgit strengthened to RM4.1435/1590 per US$1, up marginally from last Friday’s close of RM4.1460/1495.
Under the Surface: Why the Move?
Economists point to diverging commentary from Fed officials as the key driver of the local currency’s modest uptick. The president of the Federal Reserve Bank of Boston reportedly pushed back on December rate-cut prospects, citing persistent inflation and a strong labour market. By contrast, the president of the Federal Reserve Bank of New York suggested that policy may already be restrictive and hinted at a possible cut.
Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the mixed signals sent the ringgit into a narrow trading range, around RM4.14 to RM4.15 per US dollar.
Regional Currency and Market Implications
The ringgit’s slight strength mirrors broader Asian-currency behaviour amid global monetary uncertainty:
- The local note also improved against selected major currencies: for example, it firmed versus the Japanese yen and euro early in trading.
- However, it was mixed against some ASEAN neighbours, trading weaker versus the Thai baht, while holding flat against the Singapore dollar and the Philippine peso.
- For investors and exporters in Malaysia, the range-bound ringgit suggests modest currency tailwinds, but not enough to expect rapid appreciation unless clarity emerges around US rate policy.
What’s Next for the Ringgit and Markets
Key monitoring points for the ringgit in the coming days include:
- Fed commentary and rate-cut expectations: A shift in the trajectory of US interest-rates could prompt more decisive moves in emerging-market currencies including the ringgit.
- Domestic economic data: Stronger-than-expected Malaysian inflation or trade numbers could influence expectations of monetary-policy response from Bank Negara Malaysia.
- Regional capital flows: Should global risk sentiment deteriorate or strengthen, Malaysia’s positioning as an export-oriented economy may see currency effects from inbound/outbound capital.
- Technical ranges: The ringgit looks likely to remain in the RM4.14–RM4.15 band unless a major external shock occurs or policy indications become clearer.
