KUALA LUMPUR: The ringgit appreciated against the US dollar and other major currencies at the opening today, supported by positive sentiment ahead of the tabling of the national budget this Friday.
At 8 am, the local currency strengthened to 4.2075/2260 against the greenback from yesterday’s close of 4.2125/2155.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the USD/MYR pair is expected to trade within a narrow range, as the upcoming budget announcement is likely to offer greater clarity on Malaysia’s economic outlook.
“The dollar-ringgit is expected to trade between RM4.21 and RM4.22 today,” he told Bernama.
Further supporting the ringgit, Kenanga Investment Bank Bhd said Bank Negara Malaysia’s international reserves rose by US$0.9 billion in September to US$123.6 billion -- the highest level in nearly 11 years -- mainly due to strong gold revaluation gains and higher foreign exchange reserves.
In a note today, the investment bank said in ringgit terms, total reserves reached RM520.9 billion, marking a four-month high.
“Despite bond outflows, net foreign exchange reserves climbed to a three-year high of US$73.3 billion, supported by ongoing corporate forex repatriation, which helps underpin the ringgit’s resilience,” it said.
Kenanga Investment Bank added that the ringgit was among the best-performing ASEAN-5 currencies in September, extending gains for an eighth straight month.
“While softer global demand may temper growth in the second half of 2025, domestic momentum should hold, driven by services, household spending, targeted policy measures and structural reforms.
“At this juncture, the current policy rate remains supportive of growth, and rate cuts appear unnecessary as long as domestic demand stays firm,” it added.
At the opening, the ringgit was higher against a basket of major currencies.
It rose against the euro to 4.9030/9246 from 4.9135/9170, strengthened versus the Japanese yen to 2.7663/7786 from 2.7938/7960, and appreciated against the British pound to 5.6465/6713 from 5.6620/6661.
Against ASEAN currencies, the local note also traded higher.
It advanced against the Thai baht to 12.9473/13.0115 from 12.9532/9688, firmed versus the Singapore dollar to 3.2520/2669 from 3.2587/2613, edged up against the Philippine peso to 7.24/7.27 from 7.25/7.26, and strengthened versus the Indonesian rupiah to 254.0/255.2 from 254.3/254.6. - Bernama
