The ringgit strengthened to 4.1540/1660 against the US dollar as buying interest continued and the US government shutdown ended.
KUALA LUMPUR: The ringgit extended its gains to open higher today, supported by sustained buying interest and a weaker US dollar.
At 8.01am, the local currency appreciated to 4.1540/1660 against the greenback from Monday’s close of 4.1555/1635.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid anticipates positive sentiment to persist throughout the trading session.
He projected the US dollar-ringgit pair would hover between RM4.15 and RM4.16 today.
“Riskier assets, including equities, rallied overnight amid expectations of an imminent resolution to the US government shutdown,” he told Bernama.
He noted this marked the longest government shutdown, potentially damaging US economic growth in the final quarter of 2025.
“Disruptions to government services like flight delays and delayed data releases could strengthen arguments for a December interest rate cut,” he explained.
IPPFA Sdn Bhd director of investment strategy Mohd Sedek Jantan confirmed the US Senate voted 60:40 to reopen the government after 41 days of closure.
He said while broader fiscal issues remain unresolved, the decision provides relief to markets and public sector workers.
“Agencies will resume operations, leading to a staged release of backlogged economic data,” he stated.
“The long-delayed September jobs report, originally scheduled for October 3, should be among the first releases,” he added.
He emphasised this data would offer crucial insights into labour market conditions ahead of the Federal Reserve’s December 10 policy meeting.
The ringgit strengthened against most major currencies at opening.
It gained against the Japanese yen to 2.6946/7026 from 2.6954/7008 on Monday.
The local note appreciated versus the euro to 4.8004/8142 from 4.8071/8163.
It also improved against the British pound to 5.4716/4875 from 5.4736/4842 previously.
The ringgit traded mostly higher against ASEAN currencies.
It strengthened against the Singapore dollar to 3.1888/1982 from 3.1899/1963.
The local currency climbed against the Philippine peso to 7.04/7.07 from 7.05/7.06.
It also improved against the Thai baht to 12.8360/8819 from 12.8367/8670.
The ringgit remained unchanged against the Indonesian rupiah at 249.4/250.2. – Bernama
