KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday, in line with strengthening Chinese yuan supported by upbeat China’s June economic data release, said an analyst.
At 8 am, the ringgit strengthened to 4.2445/2670 against the greenback, from Monday’s close of 4.2505/2560.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the data from China, including exports, money supply and new loans, reflects the positive impact of recent economic stimulus measures.
“At the current juncture, the ringgit and Chinese yuan have positively correlated in the region of 80 per cent, with the yuan remaining stable against the US dollar,” he told Bernama.
Mohd Afzanizam said the ringgit’s gains came despite the US dollar index (DXY) climbing to 98.106 points, as markets reacted to ongoing United States (US) tariff uncertainties and President Donald Trump’s signals of willingness to negotiate, including with the European Union.
“Risky assets such as equities closed higher while the US Treasury yields were rising, reflecting concern over inflation,” he said.
Yesterday, Mohd Afzanizam said the ringgit closed 0.08 per cent lower against the US dollar to 4.2533.
“As such, expect ringgit to trade between 4.24 and 4.25 today,” he added.
At the open, the ringgit was higher against a basket of major currencies.
It advanced against the Japanese yen to 2.8720/8874 from Monday’s close of 2.8858/8897, strengthened against the British pound to 5.6987/7289 from 5.7305/7379, and gained versus the euro to 4.9512/9775 from 4.9693/9757 previously.
The local note was also firmer against most ASEAN currencies.
It rose vis-a-vis the Singapore dollar to 3.3093/3271 from 3.3184/3229, rose against the Thai baht to 13.0660/1450 from 13.1213/1439, edged up against the Indonesian rupiah to 261.1/262.7 from 261.5/262.0, and appreciated versus the Philippine peso to 7.49/7.53 from 7.50/7.51. - Bernama
