Qualampur: Ringit continued its upward pace against the US dollar in today’s opening, supporting growing concerns over a weak US dollar index and American fiscal policies.
At 8.01 am, the local currency increased to 4.2190/2365 against Greenback, from close to 4.2300/2355 on Thursday. DXY slipped 0.26 percent, which reflects market discomfort on potential American tax deduction and reduction in expenditure.
Bank Malaysia Malaysia BHD Chief Economist Dr. Mohammad Afzanim Abdul Rashid said that the US Senate is debating on tax cuts, decicade spending reduction and clean energy subsidy cuts. He said, “The Congress budget office estimates that these measures can increase the fiscal deficit to $ 3.3 trillion from 2025 to 2034, giving 11.8 million Americans unknown by 2034,” he told Bernma.
The proposed bill, with a deadline of July 4, 2025, can give more stress to the US government’s credit, putting pressure on the dollar. “We hope that the ringdight firms will remain, trade between RM4.22 and RM4.23 against the US dollar.”
Ringit also obtained against major and regional currencies. It strengthened against Japanese Yen (2.9359/9399 from 2.9185/9308), British pounds (5.7876/8116 to 5.8141/8217), and Euro (4.9472/9677 to 4.9597/9661 from).
Among ASEAN peers, it appreciated the Singapore dollars (3.3067/3207 3.3192/3240) and Thai Baht (12.9179/9795 13.0254/0488). Marginal benefits were observed against Indonesian Rupiah (260.4/261.7) and Philippine Peso (7.46/7.50).
