KUALA LUMPUR: The ringgit remained firm against the US dollar at the opening on Friday, supported by sustained demand for the local currency amid improving risk appetite among traders and investors.
At 8 am, the local currency strengthened to 3.9750/9935 against the greenback from Thursday’s close of 3.9795/9845.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) fell 0.32 per cent to 98.819 points. In contrast, the two- and 10-year US Treasury yields fell by two basis points to 3.77 per cent and 4.28 per cent.
He noted that the US gross domestic product for the fourth quarter of 2025 (4Q2025) fell to 0.5 per cent from consensus estimates of 0.7 per cent, down from 4.4 per cent in 3Q2025.
"This suggests the US economy is on a weaker trajectory, and the Core Personal Consumption Expenditures (PCE) inflation, which moderated to three per cent in February from 3.1 per cent previously, suggests the Federal Reserve might cut interest rates at some point this year.
"As such, this could be positive for the ringgit. Nonetheless, guarded sentiment over the ceasefire would keep a lid on the pace of ringgit appreciation,” he told Bernama.
Meanwhile, the ringgit opened mostly lower against a basket of major currencies.
It strengthened against the Japanese yen to 2.4981/5099 from 2.5028/5061 at Thursday’s close, but was marginally lower against the euro at 4.6468/6684 from 4.6457/6515 and eased versus the British pound to 5.3372/3621 from 5.3337/3404.
The local currency traded mixed against ASEAN currencies.
It fell against the Singapore dollar to 3.1216/1366 from 3.1204/1246 at yesterday’s close, but appreciated against the Thai baht to 12.3859/4517 from 12.3976/4201.
It was little changed against the Philippine peso at 6.65/6.69 from 6.66/6.67 previously, while nearly flat against the Indonesian rupiah at 232.6/233.7 compared with 232.8/233.2. - Bernama
