KUALA LUMPUR: The ringgit opened higher against the US dollar today, buoyed by continued weakness in the greenback amid growing concerns over the United States’ (US) fiscal trajectory and trade policy inconsistencies.
At 8.05 am, the ringgit rose to 4.2050/2250 against the US dollar compared with Monday’s close of 4.2155/2220.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) had extended its downward trend, falling to 98.934 points, as investors grew wary of the direction of US trade policy under President Donald Trump.
"The delay in implementing the 50 per cent tariff on European Union goods until July 9, 2025, signals uncertainty in the Trump administration’s trade stance, undermining confidence in the US dollar.
"Furthermore, the expansionary fiscal measures, which are expected to widen the US fiscal deficit and increase national debt levels, have further weighed on sentiment towards US assets,” he told Bernama.
Mohd Afzanizam said that against this backdrop, emerging market currencies, including the ringgit, continued to appreciate, supported by improving capital inflows and better risk appetite.
"Market trends suggest the ringgit could maintain its positive momentum in the immediate term, especially if the US maintains its current policy tone,” he said.
The ringgit traded higher against a basket of major currencies at the close.
It gained vis-à-vis the euro to 4.7903/8131 from 4.7972/8046, rose against the British pound to 5.7058/7329 from 5.7175/7263, and expanded versus the Japanese yen to 2.9500/9643 from 2.9506/9553 on Monday.
The local note also traded higher against its ASEAN peers.
It improved against the Singapore dollar to 3.2757/2915 from 3.2826/2879, strengthened against the Thai baht to 12.8992/9745 from 12.9231/9466, advanced vis-à-vis the Philippine peso to 7.58/7.63 from 7.60/7.62, and appreciated against the Indonesian rupiah to 258.7/260.1 from 259.4/259.9, previously. - Bernama
