The ringgit opened firmer against the US dollar today, extending yesterday’s gains as investor sentiment improved after data showed Malaysia’s foreign direct investment (FDI) surged 41.2% to RM65.9 billion in 2025.
At 8am, the local currency strengthened to 4.1340/4.1400 against the greenback from 4.1355/4.1400 at yesterday’s close.
The Department of Statistics Malaysia (DOSM) reported yesterday that Malaysia’s FDI increased to RM65.9 billion in 2025 from RM46.7 billion in 2024, driven mainly by equity injections from foreign investors and inflows into debt instruments.
DOSM said Malaysia’s cumulative FDI position rose to RM1.09 trillion at end-2025, equivalent to 53.7% of gross domestic product, up from 51.4% in 2024, reflecting sustained confidence among foreign investors in the country’s economic prospects.
On the broader macroeconomic front, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said crude oil prices continued to decline as the reopening of the Strait of Hormuz became increasingly evident.
“Demand for vessels has risen, with charter rates for Very Large Crude Carriers (VLCCs) in the Gulf increasing significantly.
“Consequently, yields on two-year and 10-year US Treasury notes fell by five and 10 basis points to 4.15% and 4.39%, respectively,” he said.
However, the US Dollar Index (DXY) remained well supported at 101.577 points, with traders and investors awaiting the United States Personal Consumption Expenditures (PCE) inflation report due later tonight. Consensus forecasts point to inflation of 4.0%, he added.
Afzanizam said markets have become increasingly convinced that the US Federal Reserve would deliver a 25-basis-point rate hike at its September meeting.
“This appears to have provided strong support to the US dollar. We expect cautious trading to prevail ahead of the PCE inflation report tonight,” he noted.
At the opening, the ringgit traded mostly higher against a basket of major currencies.
It strengthened against the British pound to 5.4408/5.4487 from 5.4481/5.4540 at Wednesday’s close and edged up against the Japanese yen to 2.5553/2.5592 from 2.5567/2.5595 previously.
However, it was marginally lower against the euro at 4.6929/4.6997 from 4.6921/4.6972 yesterday.
Against regional currencies, the local note was mixed.
It weakened against the Singapore dollar to 3.1859/3.1908 from 3.1848/3.1885 at Wednesday’s close and slipped against the Thai baht to 12.3680/12.3919 from 12.3658/12.3845 previously.
The ringgit inched up against the Indonesian rupiah to 230.2/230.7 from 230.3/230.7 yesterday and was unchanged against the Philippine peso at 6.72/6.73.
