KUALA LUMPUR: The ringgit continued to strengthen against the US dollar at the opening, as rapid shifts in US economic policies under President Donald Trump’s administration created uncertainty within the business community, potentially dampening demand.
At 8 am, the ringgit stood at 4.4200/4400 against the greenback, up from yesterday’s close of 4.4300/4340.
"The US Dollar Index (DXY) fell 0.2 per cent to 104.335 points despite favourable economic conditions in the US. Heightened policy uncertainties have reduced visibility for the US monetary authority to respond,” Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama.
Mohd Afzanizam said maintaining a moderately restrictive monetary policy stance remained the safest course to contain inflation risks.
He added that Finance Minister II Datuk Seri Amir Hamzah Azizan’s announcement of a mechanism to rationalise the RON95 fuel subsidy using MyKad in the second half of the year bodes well for the ringgit.
"It should be ringgit-positive in the medium and long term as it signals the government’s commitment to fiscal reform. The ringgit is expected to hover around RM4.42 to RM4.43 today, with technical indicators pointing to a neutral zone for the dollar-ringgit pair,” he said.
The ringgit, however, traded mostly lower against major currencies.
It edged up against the Japanese yen to 2.9297/9433 from 2.9351/9380 but weakened against the euro to 4.7727/7943 from 4.7720/7763 and slipped against the British pound to 5.7239/7498 from 5.7236/7287.
The local note was mixed against ASEAN currencies.
It strengthened against the Thai baht to 13.0615/1318 from 13.0678/0854 and gained against the Singapore dollar to 3.2997/3152 from 3.3060/3094.
However, it fell against the Philippine peso to 7.72/7.73 from 7.67/7.68 and slid against the Indonesian rupiah to 266.8/268.1 from 267.4/267.8. - Bernama
