kuala lumpur: The ringgit rose against the US dollar this morning on cautious sentiment ahead of US President Donald Trump’s inauguration, an analyst said.
At 8am, the ringgit traded at 4.5020/5095 against the greenback, higher than Friday’s close of 4.5040/5085.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit will exhibit rangebound trading today, possibly oscillating around RM4.5000.
“Traders are becoming worried about what the US President might announce,” he told Bernama.
He said the focus will be on Trump’s executive orders, which could include measures on mass deportations of illegal immigrants, industry controls and import tariffs.
He said the anticipated tariff measures could boost inflation, potentially leading to a tightening stance by the Federal Reserve.
Initially, the ringgit also strengthened against other major currencies.
It rose against the euro to 4.6290/6367 from Friday’s 4.6382/6429, against the British pound to 5.4816/4908 from 5.4953/5008, and against the Japanese yen to 2.8802/8852 from 2.8918/8949.
The local currency also advanced against ASEAN peers.
It rose against the Thai baht to 13.0504/0850 from 13.0664/0856, was little changed against the Indonesian rupiah at 274.8/275.4 versus 274.9/275.3, against the Singapore dollar rose to 3.2926/2986 from 3.2948/2983 and remained almost flat. The peso at 7.68/7.70 compared to Friday’s 7.68/7.69 against the Philippines.
