Forex Market Update: US Dollar / Malaysian Ringgit

The Malaysian Ringgit is anticipated to trade cautiously against the US Dollar in the upcoming week, influenced by ongoing uncertainties surrounding US tariff policies. This sentiment was echoed by Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, who highlighted the market’s apprehension following a US federal appeals court’s decision to temporarily pause a lower-court ruling that had previously invalidated President Donald Trump’s tariffs on imports. The Trump administration’s appeal has temporarily reinstated these tariffs, adding to the market’s uncertainty.

US Tariff Developments and Market Impact

The reinstatement of tariffs, pending the outcome of the appeal process, has introduced a layer of unpredictability in the forex market. The initial ruling by the US Court of International Trade deemed the tariffs illegal, but the Trump administration’s successful appeal has temporarily restored them. This development is crucial for forex traders and investors, as it directly impacts trade dynamics and economic relations between the US and its trading partners, including Malaysia.

Upcoming US Federal Reserve FOMC Meeting

Attention is also turning towards the upcoming Federal Open Market Committee (FOMC) meeting of the US Federal Reserve, scheduled for June 16-17. Key economic indicators, such as labor market data and inflation figures, are expected to be closely monitored. Dr. Mohd Afzanizam pointed out that releases like nonfarm payrolls, the unemployment rate, and the Institute for Supply Management manufacturing index will be pivotal in guiding investor and trader decisions. The current economic data suggests a moderating growth outlook, leading to expectations that the FOMC will maintain its current interest rate stance.

Gold Prices in Malaysia

In related financial news, gold prices in Malaysia have seen an uptick. As of June 2, gold was priced at 453.59 Malaysian Ringgits (MYR) per gram, an increase from 450.14 MYR on the previous Friday. The price per tola rose to 5,290.58 MYR from 5,250.39 MYR. These prices, calculated by FXStreet, reflect the adaptation of international prices to local currency and measurement units. Gold continues to be viewed as a safe-haven asset, particularly during times of economic uncertainty, and serves as a hedge against inflation and currency depreciation.

Forex Market Fundamentals

As of May 28, 2025, the close price for the US Dollar / Malaysian Ringgit was 4.2325 on the IDEAL PRO exchange. The currency pair has experienced fluctuations over the past year, with a 52-week high of 4.722 on June 10, 2024, and a 52-week low of 4.094 on September 29, 2024. These figures provide a context for understanding the current trading dynamics and potential future movements in the forex market.

In summary, the Malaysian Ringgit’s cautious trading stance against the US Dollar is influenced by US tariff policy uncertainties and the anticipation of the US Federal Reserve’s FOMC meeting outcomes. Meanwhile, gold prices in Malaysia continue to rise, reflecting its enduring status as a safe-haven asset.