On a Wednesday morning in Kuala Lumpur, the ringgit edged higher against the US dollar, extending a run that has now lasted eight straight trading days. The lift is small, and the economists quoted see it as borrowed from a wider global mood, one in which investors remain captivated by artificial intelligence and are content to hold risk while the US Federal Reserve keeps its rate steady. It is the kind of quiet strength that markets offer when nothing dramatic is changing, and it will hold only as long as those distant conditions do.
Ringgit Extends Gains to Eighth Straight Session Against US Dollar
Eight straight sessions of gains, none of them large
Mark
Eight days in a row sounds like a big story. Is it?
Mimi
The streak is real, but the moves are tiny. Today's rise was from 4.0865 to 4.0855 against the dollar.
Luke
Right, so eight sessions of small gains. The report doesn't say how much the ringgit has gained in total over the streak.
Mark
What's driving it, according to the economist?
Mimi
Dr Mohd Afzanizam of Bank Muamalat points to AI-related optimism lifting global equities, which he says supports the ringgit.
Luke
That's one economist's reading. The article doesn't show data linking AI-driven equities to ringgit flows, so treat it as attribution, not proof.
Mark
And the Fed?
Mimi
He expects it to hold the rate at 3.75 to 4.0 per cent, so traders are waiting on outside developments.
Luke
Also an expectation, not a decision. And his RM4.07 to RM4.08 range is a forecast for today only.
Mark
Was the ringgit stronger everywhere?
Mimi
Against the pound, yen and euro, yes. Against ASEAN currencies it was mixed, with the rupiah and peso almost unchanged.
Luke
Which suggests the story is mostly about the dollar and major currencies, not a broad regional surge.
El Pulso
- The ringgit has risen for eight consecutive sessions, a streak that draws attention but carries little force.
- Optimism around artificial intelligence is lifting global equities, and that mood is spilling into Malaysia's currency.
- Traders are holding back, waiting for signals from the US Federal Reserve before committing to a direction.
- Analysts expect the ringgit to stay within a narrow band of RM4.07 to RM4.08, so the gains are likely to stay modest.
On a Wednesday morning in Kuala Lumpur, the ringgit edged higher against the US dollar, extending a run that has now lasted eight straight trading days. The lift is small, and the economists quoted see it as borrowed from a wider global mood, one in which investors remain captivated by artificial intelligence and are content to hold risk while the US Federal Reserve keeps its rate steady. It is the kind of quiet strength that markets offer when nothing dramatic is changing, and it will hold only as long as those distant conditions do.
At 8 am on Wednesday in Kuala Lumpur, the ringgit stood at 4.0855/0915 against the US dollar, a slight improvement on Tuesday's close. It was a small step, but it marked eight straight trading days of the currency opening higher against the greenback.
Bank Muamalat's chief economist, Dr Mohd Afzanizam Abdul Rashid, told Bernama that the support comes mostly from abroad. Global equities remain buoyed by enthusiasm for artificial intelligence, and that optimism is lifting the Malaysian currency along with it. He also pointed to the Fed, which is expected to keep its federal funds rate between 3.75 and 4.0 per cent. With policy unchanged, he expects traders to wait for outside developments and the ringgit to remain in a narrow range, roughly RM4.07 to RM4.08 to the dollar.
The ringgit also firmed against the pound, yen and euro, while against ASEAN peers the moves were mixed and slight. Taken together, the streak rests on two supports: a hopeful global mood and an expectation that the Fed will stand still. Any shift in either would be the thing to watch.
At 8 am on Wednesday in Kuala Lumpur, the ringgit was quoted at 4.0855/0915 against the US dollar. Tuesday's close had been 4.0865/0900. It was a small move, but it made eight straight trading days in which the currency opened higher against the greenback.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the main support is coming from outside Malaysia. Optimism in financial markets, driven by the theme of artificial intelligence, continues to dominate global equities, and he said that mood is helping the Malaysian currency.
The other factor he named was the US Federal Reserve. He said the Fed is expected to hold the federal funds rate steady in a range of 3.75 per cent to 4.0 per cent. With policy seen as unchanged, he expects traders to wait on external developments before settling on a direction. In his words, the ringgit is likely to keep trading within a narrow range, and he put the day's expected band between RM4.07 and RM4.08 to the dollar.
The ringgit also firmed against several major currencies. Against the British pound it rose to 5.4362/4441 from 5.4412/4458 at Tuesday's close. Against the Japanese yen it moved to 2.5858/5897 from 2.5903/5927. Against the euro it climbed to 4.5459/5526 from 4.5524/5563.
Among its ASEAN peers the picture was mixed. The ringgit traded slightly higher against the Singapore dollar at 3.1881/1932, up from 3.1883/1913 the previous close. It edged up against the Thai baht to 12.0884/1115 from 12.1010/1160.
Against two other regional currencies it was almost flat. It stood at 225.0/225.4 against the Indonesian rupiah, compared with 225.0/225.3 before. Against the Philippine peso it was at 6.36/6.38, from 6.36/6.37.
So the streak rests on two things: a global equity mood tied to AI, and an expectation that the Fed will not move. The economist's forecast of a narrow RM4.07 to RM4.08 range suggests he expects the gains to be small, not sharp. Any change in the Fed's expected stance, or in the equity mood, would be what to watch.
Citas Notables
The ringgit is likely to continue trading within a narrow range as traders weigh external developments to determine their trading direction.— Dr Mohd Afzanizam Abdul Rashid, chief economist, Bank Muamalat Malaysia Bhd
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