KUALA LUMPUR, 11 September 2025 – The Malaysian ringgit ended Thursday trading largely unchanged against the US dollar, navigating a backdrop of muted risk sentiment as investors brace for forthcoming US inflation metrics.
At close, the ringgit was quoted around RM4.2185/4.2220 per US dollar, holding steady from its previous levels. Market participants are cautious ahead of key releases: later today’s US Consumer Price Index (CPI) is being watched closely following yesterday’s Producer Price Index (PPI), which moderated from expectations.
What’s Driving the Ringgit
- Inflation data in focus: Economists note that while weaker US job data has eased some fears, there remains significant uncertainty about inflation trajectories. The upcoming CPI report could influence expectations around when the Federal Reserve may cut rates.
- Safe-haven demand and geopolitical risk: External factors such as regional geopolitical developments are contributing to cautious flows in currencies. Some trades appear defensive in nature ahead of the inflation announcements.
Movement Against Other Currencies
While the ringgit remained stable versus the dollar, its performance versus other major currencies and regional peers saw more variation:
- It strengthened against the euro, moving to around RM4.9416/4.9457 from earlier quotes.
- It gained ground versus the yen, quoted at RM2.8614/2.8639, up from previous levels.
- Against the British pound, however, it slipped slightly to RM5.7127/7.174 from yesterday’s close.
Regionally, the ringgit was softer versus some ASEAN currencies: it edged down against the Singapore dollar, Thai baht, Indonesian rupiah, and Filipino peso.
Outlook & What to Watch
Analysts are exercising caution. According to Dr Mohd Afzanizam Abdul Rashid of Bank Muamalat, “while consensus expects US PPI and core PPI to stay relatively stable, traders remain alert for any upside surprises in inflation that could affect dollar strength and interest rate expectations.”
The CPI number due later today is seen as the next major trigger. A hotter-than-expected result could lift US yields and strengthen the US dollar, putting pressure on emerging market currencies like the ringgit. Conversely, a softer reading could tilt sentiment more favorably for the ringgit and regional assets.
Source: Bernama
