Ringgit opens marginally lower amid mixed global cues

KUALA LUMPUR: The Malaysian ringgit started the trading day slightly lower against the US dollar on Wednesday, remaining within a tight trading range due to conflicting global market signals. By 8am, the ringgit had dipped to 4.0840/4.0885 against the US dollar, a marginal decline from Tuesday's closing rate of 4.0835/4.0880. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, attributed the 0.33% decrease in the US Dollar Index (DXY) to 101.833 points and the stabilization of Brent crude prices near US$100 per barrel for providing some relief to the ringgit.

Rashid highlighted that the positive sentiment in global equities, driven by optimism over corporate earnings, also contributed to the currency's resilience. He noted that this improved risk appetite among traders was helping to support the ringgit today. Throughout the morning, the ringgit showed mixed performances against major currencies.

It slipped against the British pound, falling from 5.4066/5.4125 to 5.4174/5.4234, and against the euro, dropping from 4.5907/4.5957 to 4.5949/4.6000. However, it showed relative strength against the Japanese yen, rising from 2.5807/2.5837 to 2.5794/2.5824. Conversely, the ringgit faced pressure against regional currencies, declining against the Thai baht from 12.1424/12.1609 to 12.1439/12.1627, and against the Singapore dollar from 3.1935/3.1975 to 3.1956/3.1994.

The local currency remained flat against the Philippine peso at 6.50/6.51 and nearly unchanged against the Indonesian rupiah at 228.1/228.5.