Kuala Lumpur:The ringgit opened higher against the US dollar for the 10th consecutive trading day on Friday, indicating sustained positive sentiment towards the local currency at the start of trading. At 8 am, the ringgit appreciated to 4.0570/0625 against the greenback from Thursday's close of 4.0575/0620.
According to BERNAMA News Agency, the local currency was trading near a seven-week high, following a previous opening level of 4.0560 recorded on September 9, 2026. Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the US Dollar Index (DXY) fell 0.33 percent to 101.854 points.
The decline in the US Dollar Index came despite better-than-expected US gross domestic product growth in the third quarter of 2026 and a higher personal consumption expenditure (PCE) inflation rate in September. Additionally, the two-year and 10-year US Treasury yields fell by 10 and eight basis points to 4.60 percent and 4.94 percent, respectively.
Dr. Mohd Afzanizam commented, "We believe the market is pricing in the possibility that the Federal Reserve (Fed) might change its direction on monetary policy." He suggested that the ringgit is likely to maintain its positive trend in the near term, given the limited scope for further Fed monetary tightening. As a result, the ringgit-US dollar pair could hover between RM4.05 and RM4.07 today.
Against other major currencies, the ringgit traded lower at the opening. It weakened against the British pound to 5.4275/4348 from 5.4009/4069 at Thursday's close and slipped against the euro to 4.5365/5427 from 4.5176/5226. It also edged lower against the Japanese yen to 2.5707/5743 from 2.5685/5715 previously.
The ringgit showed mixed performance against its ASEAN peers. It was little changed against the Indonesian rupiah at 223.6/224.0 from 223.7/224.0 at Thursday's close and remained flat against the Philippine peso at 6.35/6.36. Meanwhile, the ringgit eased against the Singapore dollar to 3.1700/1746 from 3.1665/1702 at Thursday's close and slipped against the Thai baht to 12.0279/0513 from 12.0165/0345.