Market Overview
The Malaysian Ringgit (MYR) experienced a slight easing against the United States Dollar (USD) in early trading on 18 November 2025, after a period of recent gains. At 08:00 GMT, the bid/ask quoted pair was 4.1485/4.1595, compared with the previous close of 4.1480/4.1515. The move represents a marginal correction after the ringgit had reached a 13‑month high of 4.179 earlier in the week.
Technical Context
Analysts note that the ringgit had been in an overbought position according to technical indicators. The slight pullback is therefore viewed as a natural correction. The currency is expected to trade between 4.14 and 4.15 for the day, with traders and investors awaiting forthcoming U.S. data releases.
Economic Factors
- Bank Negara Malaysia: The overnight policy rate (OPR) was held unchanged at 2.75 % during the most recent monetary policy committee meeting. Market sentiment suggests that the key rate will remain stable into 2026, supporting the ringgit’s strength.
- U.S. Federal Reserve: Anticipated interest‑rate cuts in December may widen the interest‑rate differential, benefiting the ringgit.
- Domestic Growth: The ringgit’s mid‑ to long‑term outlook is underpinned by resilient economic growth and narrowing fiscal deficits, which are viewed as credit‑positive by rating agencies.
Relative Currency Performance
While the ringgit weakened slightly against the USD, it strengthened against other major currencies, including the Japanese Yen, Euro, Pound Sterling, and most ASEAN currencies during the same morning session.
Market Index Movements
- U.S. Dollar Index (DXY): The index rose by 0.24 % to 99.53 points, reflecting fading expectations of a December U.S. rate cut.
Conclusion
The ringgit’s modest retreat against the USD is seen as a technical correction following a period of appreciation. With Bank Negara’s policy stance expected to remain unchanged and domestic fundamentals supportive, the currency is likely to remain constructive in the medium to long term.
