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.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the US dollar index (DXY) remains resilient, hovering around 98.532 points, slightly lower than the previous day’s closing of 98.586 points. He highlighted that the odds for a quarter-point interest cut by the US Federal Reserve remain fairly high at 98.9 percent, despite the lack of official data points. Dr. Mohd Afzanizam explained that from a technical standpoint, the ringgit was already in the oversold position, implying a potential upside for the ringgit to appreciate.
Furthermore, he expects the US dollar-ringgit to linger in a narrow range of 4.21 to 4.22 today. The market is expected to be cautious as investors keep an eye on the meeting between US President Donald Trump and Chinese President Xi Jinping next week. Dr. Mohd Afzanizam stated that market sentiments may be wary about the meeting’s outcome, as China’s decision not to buy soybeans from the US is adversely impacting American farmers.
He elaborated that while the market might hope for a better deal, Trump’s unpredictability could lead to cautious trading. The market was closed on Monday, Oct 20, 2025, due to the Deepavali holiday celebration, and operations resumed 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 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.