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 market sentiment remained cautious. Investors were closely examining global economic developments and the outlook for US interest rates. The local currency rose to 4.0550/4.0610 from Friday's close of 4.0565/4.0610, with Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid stating that investors would be monitoring upcoming US inflation data.
A softer reading could impact US Treasury yields and the greenback, offering support for the ringgit. Meanwhile, Brent crude prices dropped 5.85% to US$92.57 per barrel after US President Donald Trump hinted that the conflict with Iran might end, alleviating concerns over possible supply disruptions. "The US Dollar Index (DXY) fell 0.61% to 101.679," Afzanizam noted.
Domestically, Malaysia's economic indicators and Bank Negara Malaysia's decision to keep the Overnight Policy Rate at 2.75% are expected to provide a stable backdrop for the currency. "The ringgit is anticipated to rise against the US dollar as market sentiment appears to be improving," he added. The ringgit traded at lower levels against a basket of major currencies, falling against the Japanese yen, euro, and British pound, while remaining relatively stable against the US dollar, Singapore dollar, Thai baht, rupiah, and 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.
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