KUALA LUMPUR – The ringgit opened higher against the US dollar, amid the United States (US) government shutdown and trade tensions with China, an analyst said.
At 8 am, the local note rose to 4.2165/2300 against the greenback from 4.2240/2275 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) stays resillient, hovering around 98.532 points, slightly lower than yesterday’s closing of 98.586 points.
“The odds for a quarter point interest cut by the US Federal Reserve remain fairly high at 98.9 per cent, despite the lack of the official data points.
“From the technical standpoint, ringgit was already in the oversold position, implying a potential upside for ringgit to appreciate,” he told Bernama today.
Hence, he expects the US dollar-ringgit to linger in a narrow range of 4.21 to 4.22 today.
Meanwhile, Mohd Afzanizam said the market will be on the cautious mode, as the investors watch on the meeting between US president Donald Trump and Chinese President Xi Jinping next week.
He opined that the market sentiments may be wary about the outcome from the meeting, as China’s decision not to buy soyabean from the US is hurting the American farmers.
“Perhaps the market is hoping for a better deal, but Trump is unpredictable. Hence, markets will be on the cautious mode,” he said.
The market was close on Monday, Oct 20, 2025, due to the Deepavali holiday celebration, and resumes its operation today.
At the opening, the ringgit traded higher against a basket of major currencies.
The local note increased against the British pound to 5.6522/6703 from 5.6741/6788 at Friday’s close, rose against the euro to 4.9110/9267 from 4.9421/9462 and appreciated against the Japanese yen to 2.7966/8058 from 2.8218/8244 previously.
However, the ringgit was mostly higher against the Asean currencies.
It gained against the Singapore dollar at 3.2595/2702 from 3.2635/2665 at Friday’s close and inched up versus the Indonesian rupiah to 254.3/255.3 from 254.6/254.9.
The local note was marginally higher against the Philippine peso to 7.25/7.27 from 7.26/7.27, but weakened vis-a-vis the Thai baht to 12.9543/13.0030 from 12.9301/9471. – October 21, 2025