Ringgit strengthens against yen, euro amid US dollar gains

KUALA LUMPUR, Aug 11 — The Malaysian ringgit experienced mixed performances against major currencies on Monday. At the start of trading, the local currency opened at 4.0900/0975 against the US dollar, marking a slight improvement from yesterday's close of 4.0885/0930. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the dollar's gain to the US President Donald Trump's stance on Iran's compensation claim, suggesting Tehran should bear responsibility for the damage.

Rashid noted that the US dollar index (DXY) is currently 0.27% higher at 99.811 points, hinting at potential Federal Open Market Committee (FOMC) rate hike in September, which could be favorable for the ringgit. Despite the mixed signals, the ringgit was expected to remain in a relatively stable range due to conflicting market data, as last Friday's weak US jobs report failed to weaken the American currency.

In terms of currency pairings, the ringgit gained against the Japanese yen, surging from 2.5736/5766 to 2.5696/5746. It also strengthened against the euro, climbing from 4.7247/7299 to 4.7223/7310. However, the currency faced a decline against the British pound, slipping from 5.5170/5231 to 5.5260/5361. The ringgit demonstrated mixed results against regional currencies, with notable improvements against the Singapore dollar and easing against the Thai baht.

However, it remained relatively stable against the Indonesian rupiah and showed minimal fluctuation against the Philippine peso.