KUALA LUMPUR: The ringgit rebounded against the US dollar at Friday’s open as persistent uncertainties in the United States continued to weigh on the greenback, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said.
At 8 am, the local currency traded at 3.9190/9410 against the US dollar, strengthening from Thursday’s close of 3.9275/9315.
The opening level placed the ringgit near its strongest point versus the US dollar since April 2018, when it reached 3.9030.
Mohd Afzanizam said the US Dollar Index (DXY) fell 0.28 per cent to 96.175 points as President Trump continued pressuring the US Federal Reserve (Fed) to lower the Fed Funds Rate.
"Trump has been consistently saying the central bank should lower interest rates substantially. He also indicated he would announce his nominee for Fed chairman next week, implying he would pick someone aligned with his goal of lower policy rates,” he told Bernama.
Yesterday, the ringgit depreciated 0.23 per cent to RM3.9295 after the Fed decided to maintain rates while issuing a positive assessment of the US economy.
"As such, the ringgit could resume its upward trend amid US uncertainties and a weaker dollar,” he added.
Meanwhile, the ringgit traded higher against a basket of major currencies and regional peers.
It appreciated against the euro to 4.6899/7162 from 4.6953/7001 at Thursday’s close, climbed against the Japanese yen to 2.5588/5733 from 2.5616/5644, and rose versus the British pound to 5.4114/4417 from 5.4207/4263.
Against ASEAN peers, the ringgit strengthened versus the Singapore dollar to 3.1005/1181 from 3.1065/1099, advanced against the Thai baht to 12.5356/6152 from 12.5930/6119, and firmed against the Philippine peso to 6.65/6.69 from 6.66/6.67.
It also rebounded against the Indonesian rupiah, rising to 233.8/235.3 from 234.4/234.7 yesterday. - Bernama
