Ringgit opens marginally higher amid cautious market sentiment
The local note inched up to 4.0550/4.0610 as investors assessed global economic developments and the US interest rate outlook.
KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Tuesday, as cautious investors assessed global economic developments and the outlook for US interest rates. The local currency was trading at 4.0550/4.0610 at 8am, up from Friday's close of 4.0565/4.0610. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid indicated that market participants are closely watching upcoming US inflation data, as softer readings could put downward pressure on US Treasury yields and the greenback, providing support for the ringgit.
Additionally, Afzanizam noted that Brent crude prices declined by 5.85% to US$92.57 per barrel after US President Donald Trump suggested the war with Iran might be ending, alleviating concerns over potential supply disruptions. The US Dollar Index (DXY) also fell by 0.61% to 101.679. Domestically, Afzanizam suggested that Malaysia's economic indicators, combined with Bank Negara Malaysia's decision to keep the Overnight Policy Rate at 2.75%, would create a stable environment for the ringgit.
The currency was expected to trade between RM4.05 and RM4.06 throughout the day. However, the ringgit performed differently against various major currencies, weakening against the Japanese yen, euro, and British pound, while remaining flat against the rupiah and appreciating against the Philippine peso.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
