KUALA LUMPUR, 24 October 2025 — The Malaysian ringgit gained ground against the U.S. dollar at the opening foreign-exchange session on Friday, buoyed by cautious sentiment ahead of the release of the United States’ consumer price index (CPI) report later in the day.
At around 8:02 a.m., the ringgit strengthened to RM4.2190/4.2285 per U.S. dollar, up from RM4.2250/4.2285 at Thursday’s close.
According to Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, the market is focused on the U.S. CPI figure for September, which is forecast to show an increase of 3.1% following August’s 2.9% rise. He noted that the U.S. dollar index (DXY) had been trading between 98 and 99, and signalled that the ringgit is likely to “trade in a narrow range around RM4.22 to RM4.23” today.
In addition to the greenback, the ringgit also displayed strength against some major and regional currencies:
- Against the British pound: RM5.6227/6.353 from RM5.6395/6.442.
- Versus the Japanese yen: RM2.7655/7.719 from RM2.7687/7.712.
- Against the Singapore dollar: RM3.2491/2.570 from RM3.2513/2.542.
- Versus the Philippine peso: RM7.20/7.22 from RM7.21/7.22.
Context & Implications
The ringgit’s modest appreciation comes amid a global backdrop of heightened attention on U.S. inflation, where the forthcoming CPI data could influence the trajectory of U.S. monetary policy, and by extension, currency and capital-flow dynamics in Asia.
A softer than expected U.S. inflation reading might reduce pressure on the U.S. Federal Reserve to maintain a hawkish stance, potentially weakening the U.S. dollar and supporting Asian currencies including the ringgit. On the flip side, a higher-than-expected print could reinforce dollar strength and weigh on regional currencies.
For Malaysia, an upbeat ringgit opens up several implications:
- Import cost management: A firmer currency helps ease pressure on imported inputs and raw materials, potentially helping to manage inflation.
- Capital flows: Positive currency moves can bolster investor confidence and encourage foreign portfolio inflows, particularly in the Malaysian bond and equity market.
- Export competitiveness: A stronger ringgit may slightly erode the competitiveness of exported goods, although a narrow range movement (as suggested) may mitigate this risk.
- Regional spill-overs: Given that the ringgit also strengthened versus several ASEAN currencies, Malaysia appears to be participating in broader regional currency dynamics, where safe-haven flows, commodity prices, and global risk sentiment are all in play.
Outlook
In the near term, the ringgit’s path is likely to remain range-bound, as flagged by analysts, pending the U.S. CPI release and further developments in global markets. Absent a surprise, the MYR USD pair is expected to oscillate around the RM4.22-4.23 mark.
Over the medium term, Malaysia’s currency will remain sensitive to:
- U.S. monetary policy decisions and dollar strength.
- Global commodity and energy prices (which impact Malaysia’s terms of trade).
- Domestic inflation and interest-rate developments under Bank Negara Malaysia.
- Broader regional and global risk-sentiment patterns.
