KUALA LUMPUR: The ringgit opened stronger against the US dollar on Wednesday, supported by mixed signals from United States Federal Reserve (Fed) officials regarding the direction of interest rates.
At 8.01 am, the local currency appreciated to 3.9250/9360 versus the greenback, compared with 3.9295/9360 at Tuesday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Fed Governor Stephen Miran reiterated his stance that the current policy rate remains restrictive and should be reduced to provide support for the US economy.
In contrast, Richmond Fed President Tom Barkin indicated that last year’s rate cut was intended as a precautionary move to prevent further deterioration in the labour market.
On Jan 28, the Fed paused its rate-cut cycle at its first meeting of 2026, maintaining the federal funds rate (FFR) at 3.50 to 3.75 per cent.
Despite gains against the US dollar, the ringgit traded mostly lower against other major currencies. It strengthened against the Japanese yen to 2.5189/5262 from 2.5210/5253, but weakened versus the euro to 4.6370/6500 from 4.6341/6417 and declined against the British pound to 5.3749/3900 from 5.3704/3793.
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The local currency opened mostly firmer against ASEAN currencies. It rose against the Singapore dollar to 3.0898/0990 from 3.0919/0973, strengthened versus the Thai baht to 12.3942/4376 from 12.4584/4845, and edged higher against the Indonesian rupiah to 234.2/235.0 from 234.5/235.0.
However, the ringgit slipped against the Philippine peso to 6.71/6.73 from 6.66/6.68 previously.
Dr Mohd Afzanizam noted that the ringgit closed higher against the US dollar on Tuesday and is expected to maintain its upward momentum, with immediate support seen at RM3.8722.
“Today, the USDMYR pair may trade within the 3.92 to 3.94 range,” he told Bernama.
– Bernama
-Thestar
