Kuala lumpur: The ringgit surged to the 4.10 mark against the US dollar at the close of trading on Thursday, achieving its highest level in four years and six months. This rise comes in the wake of the US Federal Reserve’s decision to cut interest rates for the third time this year, which exerted pressure on the greenback.
According to BERNAMA News Agency, the ringgit stood at 4.1040/1105 against the greenback at 6 pm, compared to its previous close of 4.1155/1195 on Wednesday. This new high surpasses the previous peak recorded on June 11, 2021, when the ringgit closed at 4.1070 against the dollar.
The US Federal Open Market Committee (FOMC) recently reduced interest rates to a range of 3.5 to 3.75 percent. This marks the third rate cut this year, following an earlier rate of 4.25 to 4.50 percent in December of the previous year. Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, observed that the local currency has continued to perform favorably against the US dollar following the FOMC meeting.
Dr. Afzanizam noted that the FOMC’s latest decision was not unanimous, with two members voting against any change and one member advocating for a 50 basis points cut. He highlighted the prevailing policy uncertainty leading into 2026, with projections indicating a potential reduction of the Fed funds rate by 25 basis points each in 2026 and 2027.
Despite its gains against the US dollar, the ringgit closed lower against other major currencies. It fell against the British pound to 5.4879/4966 from the previous close of 5.4781/4835, weakened against the euro to 4.8025/8101 from 4.7884/7930, and declined against the Japanese yen to 2.6333/6375 from 2.6240/6267.
Conversely, the ringgit showed strength against several ASEAN currencies. It rose against the Singapore dollar to 3.1711/1763 from 3.1748/1781, and gained against the Indonesian rupiah to 246.1/246.6 from 246.5/246.9. The ringgit also edged higher against the Thai baht to 12.9219/9505 from 12.9243/9422, while remaining stable against the Philippine peso at 6.95/6.97 from 6.95/6.96 the previous day.