The ringgit edged higher against the US dollar on the first trading day of the year, as the greenback weakened on expectations of possible further US Federal Reserve rate cuts in 2026. STR/NABILA ADLINA AZAHARIKUALA LUMPUR: The ringgit edged higher against the US dollar on the first trading day of the year, as the greenback weakened on expectations of possible further US Federal Reserve rate cuts in 2026. At 8am, the local currency rose to 4.0540/0645 versus the US dollar from Wednesday's close of 4.0580/0620. According to reports, the Fed is expected to implement further interest rate cuts in 2026, amid open pressure from US President Donald Trump for a more dovish central bank leadership. He said in 2025, the US Dollar Index (DXY) declined by approximately 9.6 per cent, reflecting a sustained easing in US dollar exceptionalism.

Source: New Strait Times January 02, 2026 00:40 UTC