Ringgit opens mixed against major currencies as US dollar gains

On Tuesday, the Malaysian ringgit opened mixed against major currencies as the US dollar gained strength. At 8am, the local currency traded at 4.0900/4.0975 against the greenback, up from yesterday's close of 4.0885/4.0930. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US dollar index (DXY) is currently up 0.27% at 99.811 points.

Rashid explained that US President Donald Trump's stance on Iran's compensation demand is dollar-positive, as it could improve the odds of a rate hike during the September Federal Open Market Committee (FOMC) meeting. Consequently, he expects the ringgit to remain range-bound due to conflicting signals, with weak US job data last Friday failing to weaken the American currency.

The ringgit showed strength against the Japanese yen, rising from 2.5736/2.5766 to 2.5696/2.5746. It also strengthened against the euro, moving from 4.7247/4.7299 to 4.7223/4.7310. However, the local currency was weaker against the British pound, falling from 5.5170/5.5231 to 5.5260/5.5361. Against regional currencies, the ringgit was firmer against the Singapore dollar, up from 3.1961/3.2002 to 3.1943/3.2004.

It eased against the Thai baht, declining from 12.3894/12.4079 to 12.3921/12.4204. The ringgit remained unchanged against the Indonesian rupiah and almost flat against the Philippine peso.