Ringgit Strengthens Slightly Against US Dollar & Key Currencies

KUALA LUMPUR: The ringgit opened marginally firmer against the US dollar and other major currencies on Wednesday, supported by modest demand, as traders remained cautious and monitored ongoing economic developments. At 8 am, the local currency traded at 4.0525/0575 against the greenback, compared with Tuesday’s close of 4.0530/0580. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said risk-off sentiment continued to weigh on global financial markets amid lingering concerns over tariffs and geopolitical tensions. He said the US Dollar Index (DXY) fell 0.83 per cent to 98.570 points, which could lend some support to the ringgit. "As such, the ringgit is expected to track a similar trend, with market sentiment remaining cautious despite positive domestic economic data,” he said. "Expect the ringgit to trade within a tight range of around RM4.05 to RM4.06 today. Meanwhile, Bank Negara Malaysia’s Monetary Policy Committee decision tomorrow should provide greater clarity on the economic outlook,” he told Bernama. The ringgit strengthened against a basket of major currencies. It rose versus the Japanese yen to 2.5615/5648 from 2.5696/5729 on Tuesday, edged up against the British pound to 5.4462/4529 from 5.4618/4686, and appreciated against the euro to 4.7516/7574 from 4.7530/7588. Against ASEAN currencies, the local note was mostly firmer. It gained against the Singapore dollar to 3.1557/1598 from 3.1602/1646 and strengthened versus the Indonesian rupiah to 238.7/239.4 from 239.0/239.4. However, it slipped against the Thai baht to 13.0566/0824 from 13.0397/0629 and was unchanged versus the Philippine peso at 6.81/6.83. - Bernama