The ringgit opened trading today stronger against the US dollar, continuing yesterday's gains on improved investor sentiment after data showed Malaysia's foreign direct investment (FDI) performance was encouraging.
At 10:17am, the ringgit was at RM4.1130, up 0.53% since it opened early Thursday in the Asian session.
According to the Department of Statistics Malaysia (DOSM), the country's FDI is expected to increase to RM65.9 billion in 2025 from RM46.7 billion in 2024.
The increase was driven mainly by equity injections from foreign investors as well as inflows into debt instruments.
DOSM also announced that Malaysia's FDI stock increased to RM1.09 trillion by the end of 2025, equivalent to 53.7 percent of Gross Domestic Product (GDP), compared to 51.4 percent in 2024.
This performance reflects the continued confidence of foreign investors in Malaysia's economic prospects.
From a global macroeconomic perspective, Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid said crude oil prices continued to decline following the increasingly clear reopening of the Strait of Hormuz.
He explained that demand for oil tankers had increased, with charter rates for Very Large Crude Carriers (VLCCs) in the Gulf region recording a significant increase.
In this regard, US Treasury bond yields for two-year and 10-year terms fell by five basis points and 10 basis points, respectively, to 4.15 percent and 4.39 percent.
However, the US Dollar Index (DXY) remained firm at 101.577 points, with traders and investors awaiting the US Personal Consumption Expenditure (PCE) inflation report scheduled for release tonight.
The market consensus is expecting the inflation rate to be at 4.0 percent.
He added that the market is increasingly confident that the US Federal Reserve (Fed) will implement a 25 basis point interest rate hike at its September meeting, thus continuing to support the strengthening of the US dollar.
Therefore, trading activity is expected to remain cautious ahead of the PCE data release.
In early trade, the ringgit was mostly traded higher against major world currencies.
The ringgit strengthened against the British pound to 5.4408/4487 from 5.4481/4540 at Wednesday's close, and rose slightly against the Japanese yen to 2.5553/5592 from 2.5567/5595.
However, the ringgit depreciated slightly against the euro to 4.6929/6997 from 4.6921/6972 yesterday.
Against regional currencies, the ringgit performed mixed.
It weakened against the Singapore dollar to 3.1859/1908 from 3.1848/1885, and depreciated against the Thai baht to 12.3680/3919 from 12.3658/3845.
Conversely, the ringgit appreciated slightly against the Indonesian rupiah to 230.2/230.7 from 230.3/230.7, while remaining unchanged against the Philippine peso at 6.72/6.73
