Ringgit opens slightly higher against greenback despite higher US rate expectations

At 8am on Tuesday, the Malaysian ringgit opened marginally higher against the US dollar, despite expectations that the US interest rates would increase. At the beginning of the day, the ringgit was trading at 4.0835/0895 against the US dollar, up from Monday's closing rate of 4.0845/0890. Dr Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, stated that the US dollar index (DXY) had risen by 0.23% to 102.167 points, indicating a stronger greenback.

Consequently, the ringgit was expected to stay within a narrow trading range. Afzanizam also noted that the US dollar had strengthened as demand for the currency grew, with some investors turning to safer assets due to global uncertainty. Throughout the day, the ringgit traded higher against many major currencies, including the Japanese yen and the British pound.

However, it weakened against the euro and against the Singapore dollar compared to the previous trading session. The ringgit's performance against regional currencies was mixed, with it strengthening against the Thai baht but weakening slightly against the Singapore dollar. The Malaysian ringgit remained unchanged against the Philippine peso and the Indonesian rupiah.