Qualampur: An analyst stated that the Ringit continued to strengthen against the US dollar when it opens today, inspired by tariff shock, expected to negatively affect the US economy.
At 8.04 am, the local note was 4.2100/2410 vs Greenback from 4.2285/2345 on Friday.
Bank Malaysia Malaysia BHD Chief Economist Dr. Mohammad Afzanim Abdul Rashid said that the recent tax cut law passed by the US House of Representatives is expected to increase the fiscal deficit and increase the government debt level.
“The sovereign rating by Moody’s rating, downgrade, which was before the law approval, has pushed the yield of the American Treasury more, with more than the 30 -year bond of 5.0 percent mark, the 30 -year bond has become more expensive than borrowing, with more than a mark of 5.0 percent.
“As a result, the markets are now at an important intersection, as as a US dollar, traditionally seen as a safe-heaven currency, that situation is re-depicted,” he explained Bernma.
For example, the ringit is expected to be positive in the light of the weak US dollar, he said.
Mohammad Afzanizam said that the current US $/RM support and resistance levels are at 4.0942 and 4.2624 respectively.
“The US $/RM pair can settle around 4.2103 within the range of 4.221 to 4.23, assuming” assuming that the ringit gets 0.5 percent stronger this week, “he said.
In the opening, Ringit did a high business against a basket of major currencies and ASEAN currencies.
It appreciated 5.7016/7436 against the British pounds from 5.7072/7153 to close from Friday, the euro received 4.7985/8053 to 4.7918/8271 from 4.7985/8053, and increased from 2.9490/9709 to 2.9502/9709 against Japanese yen.
Against regional colleagues, Ringit improved on Friday at 3.2775/3022 against the Singapore dollar from 3.2891/2940 last Friday, and strengthened 12.9744/13.0012 against Thai Baht to 12.9173/13.0252 before.
Local notes also rose to Philippine Peso from 7.61/7.68 to 7.65/7.66, and increased against Indonesian ropy to 259.6/261.5 260.7/261.1.
