Good news for Malaysia! The Ringgit is on the rise, showing strength against the US dollar. This positive trend reflects growing confidence in the Malaysian economy and a decrease in trade tensions. But what does this really mean for you? Let's dive in!
At 8:32 am, the Ringgit was trading at 4.0930/1040 against the US dollar, a slight improvement compared to last Friday's close of 4.0945/1005. This level hasn't been seen since April 27, 2021, when the Ringgit closed at 4.0960 against the US dollar.
Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, suggests that the Ringgit is likely to trade within a narrow range today, following its strong performance last week.
He points out that the recent US interest rate cut by the US Federal Reserve wasn't a unanimous decision. Two policymakers voted to keep rates steady due to concerns about inflation. This is a key point to watch, as differing opinions among policymakers can signal market uncertainty.
"This week, we will see more data points on inflation along with the US Nonfarm Payroll (NFP) report for November. Traders and investors are, therefore, expected to remain cautious today,” he told Bernama.
Back home, the Statistics Department Malaysia's Industrial Production Index (IPI) data released last Friday revealed a 6.0% year-on-year expansion in October 2025. The manufacturing sector led the way with a robust 6.5% increase. This signals healthy growth in the Malaysian economy.
According to the economist, export-oriented industries within the manufacturing sector grew by 7.2%, up from 4.8%, indicating that strong external demand is supporting Malaysia's economy. This is a positive sign, suggesting that Malaysia's goods are in demand globally.
In the early trading session, the Ringgit also showed strength against other major currencies.
- It rose against the British pound to 5.4670/4817 from 5.4789/4869.
- It edged up against the Japanese yen to 2.6246/6318 from 2.6264/6304.
- It increased against the euro to 4.8007/8136 from 4.8037/8107.
The local currency showed mixed performance against ASEAN currencies.
- It climbed against the Singapore dollar to 3.1677/1765 from 3.1701/1750.
- It inched up against the Indonesian rupiah to 245.8/246.6 from 245.9/246.4.
- However, the Ringgit decreased against the Thai baht to 12.9624/13.0050 from 12.9589/9845.
- It remained almost flat against the Philippine peso at 6.93/6.95 from 6.93/6.94.
So, what do you think? Are you optimistic about the Ringgit's performance? Do you think the US interest rate decisions will significantly impact the Malaysian economy? Share your thoughts in the comments below!
