KUALA LUMPUR: The Malaysian ringgit concluded lower against the US dollar on the first trading day of the year, driven by persistent demand for the greenback amid concerns about potential monetary policy shifts by the United States Federal Reserve.

According to BERNAMA News Agency, the ringgit depreciated to 4.4760/4810 against the US dollar by 6 p.m., down from the previous close of 4.4690/4745. The dip reflects market apprehension over the Fed’s possible interest rate cuts anticipated in 2025. Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that investor sentiment is further affected by uncertainties surrounding the economic policies of a potential second administration under Donald Trump.

The US Dollar Index, which measures the strength of the dollar against a basket of major currencies, saw a 0.33 percent increase, reaching 108.487 points, signaling robust demand for the US currency. Despite the ringgit’s dip against the dollar, it showed mixed performance against other major currencies.

The ringgit weakened slightly against the Japanese yen, closing at 2.8546/8580 compared to 2.8529/8566. However, it gained ground against the British pound, appreciating to 5.5869/5932 from a previous 5.6095/6164, and also strengthened against the euro, ending at 4.6336/6387 from 4.6549/6606.

In trading against ASEAN currencies, the ringgit’s performance was varied. It depreciated against the Singapore dollar, closing at 3.2859/2898 from 3.2824/2867, and against the Philippine peso, sliding to 7.73/7.75 from 7.70/7.72. Conversely, it gained against the Thai baht, firming to 13.0530/0744 from 13.0566/0830, and appreciated vis-a-vis the Indonesian rupiah, closing at 276.2/276.7 compared to 276.9/277.5.