◉ HEADLINES

Ringgit up on 13MP optimism, Fed holds rate steady

Local note strengthens to 4.2370/2570 against USD from yesterday’s close of 4.2410/2455

9:30 AM MYT

 

KUALA LUMPUR – The ringgit opened higher against the US dollar and a basket of major currencies on Thursday, ahead of the 13th Malaysia Plan (13MP) announcement this afternoon, said Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid. 

At 8am, the local note strengthened to 4.2370/2570 against the greenback from yesterday’s close of 4.2410/2455. 

Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim is scheduled to table the 13MP in Parliament later today. 

Afzanizam said the 13MP has raised expectations of higher development spending, which could support stronger economic growth. 

“The 13MP allocation is likely to spur domestic demand, particularly in construction-related sectors,” he told Bernama. 

Meanwhile, Afzanizam noted that the US Dollar Index (DXY) continued to climb, reaching 99.82 points, after the Federal Open Market Committee (FOMC) of the US Federal Reserve (Fed) opted to keep the Fed Funds Rate unchanged at 4.25-4.50%.

He said the US Fed has revised down its economic outlook, citing a moderation in activity during the first half of 2025. 

“This aligns with the second-quarter GDP print of 3.0%, largely driven by a sharp 30% drop in imports, which led to a significant net export contribution to overall growth. 

“The decision to maintain the policy rate was not unanimous, as two Fed members voted in favour of a quarter-point cut,” he added. 

For now, Afzanizam said the development remains positive for the greenback, as wide interest rate differentials continue to favour the US dollar. 

As such, the ringgit is expected to trade within the RM4.24 to RM4.25 range today. 

At the opening, the ringgit traded higher against major currencies. 

It appreciated against the Japanese yen to 2.8394/8530 from 2.8646/8678 at yesterday’s close, rose against the British pound to 5.6161/6427 from 5.6745/6805, and strengthened versus the euro to 4.8420/8649 from 4.8996/9048. 

The local unit was also higher against most regional currencies, although flat against the Philippine peso at 7.36/7.40 from 7.36/7.38 previously. 

It edged up against the Indonesian rupiah to 258.2/259.6 from 258.5/258.9, gained on the Singapore dollar to 3.2695/2852 from 3.2919/2957, and improved against the Thai baht to 12.9433/13.0136 from 13.0528/0719. – July 31, 2025

Topics

 

◉ Popular

National shuttlers demand RM2 million salaries: can BAM keep up financially?

Several top athletes aim for salaries that could outpace even the highest-earning footballers, raising questions about the sustainability of funding within Malaysian sports

RM200m World Cup rights fee puts Malaysia’s 2026 viewing at risk

Malaysia could miss live coverage of the 2026 FIFA World Cup as a steep RM200 million broadcasting fee strains Astro and RTM, raising doubts over whether fans will be able to watch football’s biggest tournament

Education Ministry scraps teacher training system to lighten workload

Minister Fadhlina Sidek vows to help teachers focus on what matters most – teaching – as new curriculum changes approach

◉ Related