Ringgit extends gains against US dollar on improved risk appetite

KUALA LUMPUR: The ringgit remained firm against the US dollar at the opening on Friday, supported by sustained demand for the local currency amid improving risk appetite among traders and investors.

At 8am, the local currency strengthened to 3.9750/9935 against the greenback from Thursday's close of 3.9795/9845.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index fell 0.32 per cent to 98.819 points. In contrast, the two- and 10-year US Treasury yields fell by two basis points to 3.77 per cent and 4.28 per cent.

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He noted that the US gross domestic product for the fourth quarter of 2025 fell to 0.5 per cent from consensus estimates of 0.7 per cent, down from 4.4 per cent in the third quarter.

"This suggests the US economy is on a weaker trajectory, and the Core Personal Consumption Expenditures inflation, which moderated to three per cent in February from 3.1 per cent previously, suggests the Federal Reserve might cut interest rates at some point this year.

"As such, this could be positive for the ringgit. Nonetheless, guarded sentiment over

the ceasefire would keep a lid on the pace of ringgit appreciation," he told Bernama.