RINGGIT ENDS AT FRESH SEVEN-YEAR HIGH OF 3.95 VS US DOLLAR, NEW SUPPORT SEEN AT 3.8722

By Abdul Hamid A Rahman

KUALA LUMPUR, Jan 27 (Bernama) -- The ringgit ended at another fresh high in more than seven years against the US dollar today, reaching the 3.95 level, with an economist setting a new support level for the local currency at RM3.8722.

At 6 pm, the local currency rose to 3.9500/9555 versus the greenback from 3.9615/9670 at Monday’s close. This was the strongest closing level since the ringgit hit 3.9480 in May 2018.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the two-day FOMC meeting will begin tonight, with traders and investors closely monitoring how the US Federal Reserve (Fed) describes the economic outlook and how it translates into policy decisions going forward.

“Markets have priced in two interest rate cuts this year, reflecting expectations that the Fed will adopt a more accommodative policy stance as economic conditions evolve.

“There is also a new chairman to be appointed in the near future, with the US President expected to announce the decision fairly soon,” he told Bernama.

Previously, Mohd Afzanizam had said that based on technical chart analysis, the new support level for the local currency is located at RM3.8722.

He added that while near-term sentiment remains supportive, markets are likely to stay cautious over the direction of interest rates in 2026.

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim said that positive economic data have reinforced the position and strength of the ringgit, and the currency’s appreciation also reflects confidence in Malaysia’s economic system, in line with the nation’s improving economic indicators.

“The strengthening of the ringgit should not be viewed in isolation; it must also be considered alongside rising investment, incomes, and lower unemployment.

“Overall economic data point to a positive trend, which in turn bolsters the ringgit’s position and resilience,” he told the Dewan Rakyat during Question Time today.

The ringgit appreciated against the British pound to 5.4103/4178 from 5.4166/4241 at yesterday’s close, increased vis-à-vis the euro to 4.6958/7023 from 4.6999/7064 on Monday, and gained versus the Japanese yen to 2.5691/5730 from 2.5783/5820 previously.

It strengthened against the Singapore dollar to 3.1174/1219 from 3.1242/1288 yesterday, advanced versus the Thai baht to 12.7247/7478 from 12.7441/7679 at the previous close, firmed vis-à-vis the Indonesian rupiah to 235.5/236.0 from 236.0/236.4 previously, and rose against the Philippine peso to 6.68/6.70 from 6.72/6.73.

-- BERNAMA