kuala lumpur: Analysts said the ringgit opened higher against the US dollar on improving local market sentiment supported by positive comments from Bank Negara Malaysia (BNM) and expectations of a US Federal Reserve policy change.
At 8am, the ringgit was at 4.2220/2315 against the greenback, slightly firmer from 4.2265/2295 at yesterday’s close.
An analyst said market sentiment improved following comments by BNM governor Datuk Seri Abdul Rashid Gafoor, who said the ringgit has the potential to appreciate to RM4 against the greenback by the end of the year.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said although the US dollar index (DXY) continues to rise amid the US government shutdown, the trend may not be sustainable.
He noted that Philadelphia Federal Reserve Chair Anna Paulson indicated during a gathering of the National Association for Business Economics that interest rates should be lowered to more neutral levels as the inflationary impact from tariffs appears manageable.
“As such, the upside in the DXY appears unsustainable. Should the US government shutdown be resolved, the DXY could experience a correction.
“For now, it remains dollar-positive. Therefore, the US dollar-ringgit pair is expected to hover around RM4.22 today,” Mohd Afzanizam told Bernama.
Meanwhile, the ringgit strengthened against a basket of major currencies.
It rose against the euro to 4.8832/8942 from 4.9006/9041 on Monday, against the Japanese yen to 2.7694/7758 from 2.7775/7796, and against the British pound to 5.6292/6419 from 5.6369/6409.
The ringgit was also trading higher against ASEAN currencies.
It rose against the Thai baht to 12.9517/9888 from 12.9878/13.0030, against the Singapore dollar to 3.2507/2588 from 3.2562/2587, against the Philippine peso to 7.25/7.27 from 7.26/7.26, and strengthened against the Indonesian rupiah. It happened. 254.7/255.4 to 255.0/255.3. – Bernama
