KUALA LUMPUR: The ringgit opened higher against the US dollar and other major currencies on Tuesday as Malaysia’s resilient economic fundamentals continued to support the local note amid lingering geopolitical risks in West Asia, an analyst said.
At 8 am, the ringgit rose to 4.0840/0905 against the greenback from Tuesday’s close of 4.0855/0895.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said geopolitical developments in West Asia remained in focus as officials from Saudi Arabia, Pakistan and Turkiye travelled to Iran on Monday for diplomatic talks.
"This comes as members of the US Federal Open Market Committee (FOMC) begin their two-day meeting today,” he told Bernama.
He also said the ringgit had traded within a narrow range of RM4.07 to RM4.09 against the US dollar over the past month, as traders weighed external risks against Malaysia’s resilient economic fundamentals, which continue to offer value to investors.
Mohd Afzanizam also expects the local note to maintain its current trajectory today, with market attention turning to Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting on Nov 5, amid growing discussions about the normalisation of the overnight policy rate (OPR).
The ringgit opened higher against a basket of major currencies.
It rose versus the Japanese yen to 2.5925/5968 from Monday’s close of 2.5961/5988, advanced against the British pound to 5.4497/4584 from 5.4517/4570 and increased vis-a-vis the euro to 4.5631/5703 from 4.5774/5819.
Meanwhile, the ringgit performed mostly higher against its ASEAN peers.
It rose versus the Singapore dollar to 3.1881/1935 from Monday’s close of 3.1920/1954 and appreciated against the Indonesian rupiah to 225.2/225.6 from 225.3/225.5.
However, the ringgit eased against the Thai baht to 12.0868/1110 from 12.0766/0930 and was flat vis-a-vis the Philippine peso at 6.39/6.40. - Bernama
