KUALA LUMPUR: The ringgit kicked off the day by opening higher against the US dollar on Tuesday amid traders awaiting details of the United States (US) tariff implementation, an analyst said.
At 8 am, the ringgit appreciated to 4.4500/4700 versus the greenback from 4.4640/4680 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the S&P 500 and Nasdaq fell sharply overnight, dropping 1.76 per cent and 2.64 per cent, respectively, as the US prepared to impose higher import tariffs on Canada, Mexico and China from today.
"While the US ISM Manufacturing Index remained fairly stable at 50.3 points in February from 50.9 in January, the New Orders sub-index fell sharply to 48.6 from 55.1, suggesting cooling demand that could lead to lower production,” he told Bernama.
He noted that the US dollar index declined 0.98 per cent to 106.557 as signs of a slowing US economy raised expectations that the Federal Reserve might cut interest rates to stabilise growth.
"Apart from that, European leaders' support for Ukraine concerning security guarantees has also boosted risk sentiment to some degree," he added.
Against this backdrop, he said the USD/MYR could hover around its immediate support level of 4.45.
Meanwhile, the ringgit weakened against major currencies.
It fell to 5.6528/6782 against the British pound from 5.6394/6444 at Monday’s close, declined to 4.6663/6872 versus the euro from 4.6586/6628, and edged lower against the Japanese yen at 2.9786/9922 from 2.9683/9711.
The local currency, however, was mostly higher against ASEAN currencies.
It rose to 3.3046/3200 against the Singapore dollar from 3.3130/3163, strengthened to 270.0/271.3 versus the Indonesian rupiah from 270.8/271.2, and firmed to 7.68/7.72 against the Philippine peso from 7.71/7.72.
However, it slipped to 13.0613/1339 against the Thai baht from 13.0576/0762. - Bernama
