BNM Chief Says Ringgit Could Hit RM4 by Year-End

The ringgit opened higher against the US dollar on Tuesday, buoyed by upbeat remarks from Bank Negara Malaysia and growing expectations that the US Federal Reserve may shift its policy stance.

At 8 am on October 14, 2025, the local currency was quoted at 4.2220/2315 against the greenback, a modest improvement from 4.2265/2295 at Monday's close.

فہرست

01

BNM Governor Flags RM4 Target

02

US Shutdown Clouds Dollar Strength

03

Broad-Based Gains for the Ringgit

04

What to Watch

BNM Governor Flags RM4 Target

Market sentiment got a lift after BNM governor Datuk Seri Abdul Rasheed Ghaffour said the ringgit has the potential to strengthen to RM4 against the US dollar by the end of the year. The comment, carried by local media, signalled confidence in the currency's trajectory and gave traders a reason to buy into the ringgit at the open.

US Shutdown Clouds Dollar Strength

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid cautioned that the recent rise in the US Dollar Index may not hold. He pointed to the ongoing US government shutdown as a factor that makes the dollar's current strength look fragile.

Mohd Afzanizam also noted that Philadelphia Federal Reserve President Anna Paulson had hinted, during a gathering of the National Association for Business Economics, that interest rates should be lowered towards a more neutral level. The reasoning: inflationary pressure from tariffs appears manageable, reducing the urgency to keep rates elevated.

“Should the US government shutdown be resolved, DXY could experience a correction,” he said, adding that the US dollar-ringgit pair was expected to hover around RM4.22 for the day.

Broad-Based Gains for the Ringgit

The ringgit's strength was not limited to the greenback. It also firmed against a basket of major currencies, rising against the euro to 4.8832/8942 from 4.9006/9041, gaining versus the Japanese yen to 2.7694/7758 from 2.7775/7796, and improving against the British pound to 5.6292/6419 from 5.6369/6409.

Against ASEAN currencies, the ringgit likewise traded higher, reflecting a broad improvement in local sentiment rather than a one-sided dollar story.

What to Watch

The ringgit's near-term direction hinges on two key developments: whether the US government shutdown drags on and whether the Federal Reserve signals a clearer path towards rate cuts. For now, the BNM governor's year-end RM4 target has given the market a bullish anchor, but external headwinds remain in play.