Ringgit rises modestly against the dollar amid cautious market sentiment

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Tuesday as cautious market sentiment persisted. Investors remained focused on global economic developments and the outlook for US interest rates.

At 8 am the local currency edged up to 4.0550‑4.0610 versus the dollar, compared with Friday’s close of 4.0565‑4.0610.

The market was closed on Monday for a Deepavali replacement holiday.

Bank Muamalat Malaysia Bhd’s chief economist, Dr Mohd Afzanizam Abdul Rashid, said investors will be closely watching upcoming US inflation data. Weaker readings could depress US Treasury yields and the dollar, thereby supporting the ringgit.

Meanwhile, he noted that Brent crude prices fell 5.85 % to US$92.57 a barrel after US President Donald Trump suggested a possible end to the war with Iran, easing supply‑disruption concerns.

Consequently, the US Dollar Index (DXY) dropped 0.61 % to 101.679, he added.

Domestically, Mohd Afzanizam said Malaysia’s economic indicators, together with Bank Negara Malaysia’s decision to keep the Overnight Policy Rate at 2.75 %, are expected to provide a stable backdrop for the ringgit.

The ringgit is expected to trade higher against the US dollar as market sentiment appears to be improving, he said.

He told Bernama that the ringgit is expected to trade between RM4.05 and RM4.06 today.

The ringgit declined against a basket of major currencies.

Against the yen it weakened to 2.5666‑5704 from Friday’s close of 2.5616‑5646; against the euro it fell to 4.5505‑5573 from 4.5315‑5365; and versus the pound it slid to 5.4499‑4580 from 5.4304‑4365.

Its performance against ASEAN peers was mixed.

It weakened against the Singapore dollar to 3.1704‑1756 from the previous close of 3.1657‑1694 and fell versus the Thai baht to 12.1367‑1641 from 12.0898‑1105.

Meanwhile it remained flat against the rupiah at 224.2‑224.6 and appreciated against the Philippine peso to 6.40‑6.42 from 6.43‑6.44 last Friday, Bernama reported.

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