KUALA LUMPUR: The ringgit was slightly lower against the US dollar in early trade on Tuesday amid cautious sentiment in the global currency market, said an analyst.
At 8.03 am, the ringgit eased to 4.4595/4680 against the US dollar compared with Monday’s close of 4.4570/4625.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar was boosted by concerns over the French politics wherein there was a motion of no-confidence vote over disagreement on the country’s budget.
Meanwhile, the US Federal Reserve’s (Fed) governor Christopher Waller suggested he would opt for rate cuts in the December meeting, raising the odds for more monetary easing.
"As such, ringgit could remain range bound against the US dollar as market sentiments are still wary on the Fed’s future outlook in 2025 as threats over higher tariff could raise the inflation rate next year. That could shape the pace of monetary easing,” he told Bernama.
The ringgit traded mostly higher against a basket of major currencies.
It advanced against the British pound to 5.6426/6534 from 5.6613/6683 on Monday, edged up against the euro to 4.6807/6896 from 4.6856/6914 but fell vis-a-vis the Japanese yen to 2.9784/9842 from 2.9648/9687 yesterday.
The local note also traded mostly lower against ASEAN currencies.
It was lower against the Singapore dollar at 3.3136/3202 from Monday’s close of 3.3113/3156 and eased against the Philippine peso to 7.60/7.62 from 7.59/7.61
The local unit went up against the Thai baht to 12.9134/9462 from 12.9196/9423 yesterday and eased against the Indonesian rupiah at 280.3/281.0 from 280.1/280.6 previously. - Bernama
