Ringgit opens slightly higher despite rising US rate expectations

KUALA LUMPUR — The Malaysian ringgit opened marginally higher against the US dollar on Tuesday, despite the greenback being buoyed by forecasts of increased US interest rates. At 8am, the ringgit reached 4.0835/4.0895 against the US dollar, marking a slight improvement from Monday's closing rate of 4.0845/4.0890. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, commented on the US dollar index (DXY) surging 0.23% to 102.167 points, indicating a stronger greenback.

"Consequently, the ringgit was expected to remain confined within a limited trading range," he observed. He further explained that the US dollar's strengthening was attributed to heightened demand for the currency, as certain investors gravitated towards safer assets in response to worldwide uncertainty. Throughout the trading session, the ringgit demonstrated an upward trajectory against numerous major currencies.

It appreciated against the Japanese yen, moving from 2.5858/2.5886 at the previous close to 2.5847/2.5886, and also strengthened against the British pound, shifting from 5.4022/5.4081 to 5.3976/5.4055. However, it experienced a decline against the euro, dropping from 4.5775/4.5825 to 4.5805/4.5872. In terms of regional currencies, the ringgit exhibited mixed performance.

It strengthened against the Thai baht, shifting from 12.1234/12.1411 to 12.1151/12.1390, while simultaneously weakening slightly against the Singapore dollar, transitioning from 3.1905/3.1943 to 3.1907/3.1957. The local currency remained stable against the Philippine peso at 6.52/6.53 and the Indonesian rupiah at 227.9/228.3.