The ringgit opened higher against the US dollar on Friday, driven by growing expectations that the US Federal Reserve (Fed) will cut interest rates in the near future.
At 10.20am, the ringgit was at 4.2410 against the US dollar from 4.2465 at the close of trading on Thursday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the statement by Fed Governor Christopher Waller signaled that monetary policy easing measures could be implemented as early as this month, without having to wait for the labor market to deteriorate first.
He added that the market was also cautious about whether other countries would gain any concessions before the new US tariffs came into effect on August 1. The tariff issue will continue to be a major concern for investors.
Domestically, attention is now focused on the preliminary announcement of Malaysia's Gross Domestic Product (GDP) figures for the second quarter of 2025, which is expected to be announced today.
The Malaysian economy is expected to expand by 4.5 percent, driven by early activity supporting external demand, a remaining strong labour market and continued investment that is fuelling domestic demand growth.
As a result, the ringgit is forecast to trade in a range of RM4.24 to RM4.25 against the US dollar throughout the day.
The ringgit also outperformed several major global and regional currencies.
It rose against the Japanese yen to 2.8523/8687 from 2.8548/8580, strengthened against the British pound to 5.6867/7189 from 5.6886/6946, and rose against the euro to 4.9178/9457 from 4.9217/9269 previously.
The ringgit also strengthened against the Singapore dollar to 3.2939/3131 from 3.3013/3051, rose against the Thai baht to 13.0385/1201 from 13.0521/0720, strengthened against the Indonesian rupiah to 259.1/260.6 from 259.8/260.2 and increased against the Philippine peso to 7.39/7.44 from 7.41/7.43.
