KUALA LUMPUR — The ringgit opened higher against the US dollar on Thursday, driven by continued buying interest in the local currency following the first US government shutdown in nearly seven years.
At 8:02 AM, the ringgit rose to 4.2000/2100 against the US dollar from 4.2045/2095 at the previous close, Bernama reported.
Bank Muamalat Malaysia Bhd’s Chief Economist, Dr Mohd Afzanizam Abdul Rashid, explained that the shutdown had begun, limiting US government services, including halting the release of key economic data.
“The crucial issue here is how quickly the deadlock between the Republican and Democrat parties over spending programs and concessions will be resolved,” he told Bernama.
“At this point, the US government shutdown is having a negative impact on the dollar. The dollar-ringgit exchange rate may once again test the psychological RM4.20 level today,” he added.
In early trading, the ringgit also gained against several major currencies.
The local unit strengthened against the euro, trading at 4.9279/9396 compared to 4.9327/9386 at Wednesday’s close, and rose against the British pound to 5.6603/6738 from 5.6605/6672.
The ringgit remained stable against the Japanese yen at 2.8542/8612, slightly higher from 2.8561/8597 previously.
It also traded stronger against most ASEAN currencies.
The ringgit appreciated against the Singapore dollar to 3.2611/2694 from 3.2623/2665 on Wednesday, and rose against the Thai baht to 12.9478/9870 from 12.9929/13.0128.
The ringgit was firmer against the Philippine peso at 7.22/7.24 from 7.23/7.24, and slightly higher against the Indonesian rupiah at 252.4/253.2 from 252.7/253.1. – October 2, 2025