KUALA LUMPUR: The ringgit maintained its upward momentum, opening higher on Tuesday as the US Dollar Index (DXY) weakened following last Friday’s release of US non-farm payroll (NFP) data, said an analyst.
At 8 am, the ringgit appreciated to 4.3700/3795 against the dollar, rising from Monday’s close of 4.3715/3765.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the DXY dropped 0.38 per cent to 103.885 points.
He stated that US Treasury yields have trended lower, reflecting expectations of a potential rate cut in the Federal Funds Rate this week.
"However, market sentiment remains cautious as the tight race in the US Presidential Election continues to be the primary factor influencing confidence in the financial markets.
"The ringgit gained some strength yesterday, with the USD/MYR exchange rate moving to RM4.3740 from RM4.3807 last Friday. As a result, the ringgit is expected to trade within a range as markets await the outcome of the US election this week,” he told Bernama.
Meanwhile, the ringgit gained against a basket of major currencies.
It rose vis-a-vis the British pound to 5.6609/6732 from Monday’s close of 5.6707/6772, appreciated versus the Japanese yen to 2.8697/8761 from 2.8775/8810 and was higher against the euro at 4.7519/7623 from 4.7636/7691.
The local note traded mostly higher versus ASEAN currencies.
It was marginally higher against the Indonesian rupiah at 277.4/278.1 from 277.5/277.9 and gained vis-a-vis the Singapore dollar to 3.3111/3186 from 3.3185/3226 and strengthened against the Thai baht to 12.9313/12.9728 from 12.9664/9882.
The ringgit was almost flat against the Philippine peso at 7.49/7.51 from 7.49/7.50. - Bernama
