KUALA LUMPUR: The ringgit continued its momentum to open higher today, buoyed by continuous buying interest in the local note amid a weakened greenback.
At 8.01 am, the ringgit rose to 4.1540/1660 against the US dollar, compared with Monday’s close of 4.1555/1635.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects sentiment to continue today, which could result in the US dollar-ringgit pair lingering around RM4.15 and RM4.16 today.
He noted that the riskier assets, such as the equities market, rallied last night as talks of a possible end to the US government shutdown could materialise soon.
"This is the longest government shutdown, and it is likely to hurt US economic growth in the final quarter of 2025.
"Disruption to government services, such as delays in flight and statistical data releases, to name a few, could, to some degree, strengthen the case for an interest rate cut in December,” he told Bernama.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said after 41 days of closure, the US Senate voted 60:40 to reopen the government.
While the move may leave broader fiscal disputes unresolved, it will, however, provide relief to markets and public sector workers, he said.
"With agencies set to resume operations, a backlog of economic data is expected to be released in stages.
"The long-delayed September jobs report, originally due on Oct 3, should be among the first to be released. It will offer key insights into labour market conditions ahead of the Federal Reserve’s Dec 10 policy meeting,” he said.
At the opening, the ringgit was stronger against a basket of major currencies.
It gained against the yen to 2.6946/7026 from 2.6954/7008 at Monday’s close and rose versus the euro to 4.8004/8142 from 4.8071/8163. The local note improved against the British pound to 5.4716/4875 from 5.4736/4842 previously.
The local note was mostly higher against ASEAN currencies.
It strengthened against the Singapore dollar to 3.1888/1982 from 3.1899/1963 at Monday’s close, climbed against the Philippine peso to 7.04/7.07 from 7.05/7.06 and also improved against the Thai baht to 12.8360/8819 from 12.8367/8670 previously.
It remained flat against the Indonesian rupiah at 249.4/250.2 from 249.4/250.1 on Monday. - Bernama
