The ringgit opened slightly lower against the US dollar on the first trading day of the year, following expectations of the next interest rate cut by the Federal Reserve (Fed) in 2026.
At 10:38 am, the ringgit opened at 4.0550, down 0.7% against the US dollar since opening early Friday trading in the Asian session.
The market was closed yesterday in conjunction with the 2026 New Year holiday.
According to reports, the Fed is expected to implement its next interest rate cut this year as United States (US) President Donald Trump has openly put pressure on the central bank leadership to lean more towards a more principled low-rate policy.
Director of Investment Strategy and National Economist of IPPFA Sdn Bhd, Mohd Sedek Jantan explained that the ringgit was stronger against regional currencies, supported by the Bloomberg Asian Dollar Index opening higher as broad Asian currency strength reemerged.
He also noted that the US Dollar Index (DXY) in 2025 fell by around 9.6%, reflecting the continued easing in the exclusion of the US dollar.
At the opening, the ringgit traded lower against major currencies.
It rose against the Japanese yen to 2.5864/5933 from 2.5907/5934, but depreciated slightly against the British pound to 5.4624/4765 from 5.4531/4585 and declined against the euro to 4.7653/7758 from 4.7617/7664 previously.
However, the ringgit traded higher against ASEAN currencies.
It rose against the Singapore dollar to 3.1541/1628 from 3.1550/1584 and rose against the Thai baht to 12.8291/8742 from 12.8560/8756.
It also strengthened against the Indonesian rupiah at 242.9/243.6 from 243.2/243.6 and was almost flat against the Philippine peso at 6.88/6.91 from 6.88/6.90.
