KUALA LUMPUR: The ringgit opened higher against the US dollar today amid ongoing United States government shutdown concerns and trade tensions with China. At 8 am, the local currency rose to 4.2165/2300 against the greenback from Friday’s closing rate of 4.2240/2275.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted the US dollar index remains resilient, hovering around 98.532 points.
He stated that the probability of a quarter-point interest rate cut by the US Federal Reserve remains very high at 98.9% despite limited official economic data. From a technical perspective, Mohd Afzanizam indicated the ringgit was already in an oversold position, suggesting potential for further appreciation.
He expects the US dollar-ringgit exchange rate to trade within a narrow range of 4.21 to 4.22 throughout today’s session. Meanwhile, market participants are adopting a cautious approach as they monitor the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping next week.
Mohd Afzanizam expressed concern that market sentiment might be wary of the meeting’s outcome, particularly given China’s decision to stop purchasing American soybeans, which is negatively impacting US farmers. He remarked that markets are hoping for a positive resolution but acknowledged President Trump’s unpredictability could maintain cautious trading conditions. Malaysian financial markets were closed on Monday for the Deepavali holiday before resuming normal operations today.
The ringgit also strengthened against other major currencies at the opening. It appreciated against the British pound to 5.6522/6703 from Friday’s close of 5.6741/6788 and rose against the euro to 4.9110/9267 from 4.9421/9462.
The local currency also gained against the Japanese yen, trading at 2.7966/8058 compared to 2.8218/8244 previously. Against ASEAN currencies, the ringgit showed mixed but generally positive performance.
It strengthened against the Singapore dollar to 3.2595/2702 from 3.2635/2665 and edged higher against the Indonesian rupiah to 254.3/255.3 from 254.6/254.9. The ringgit was marginally higher against the Philippine peso at 7.25/7.27 compared to 7.26/7.27 but weakened against the Thai baht to 12.9543/13.0030 from 12.9301/9471. – Bernama
