KUALA LUMPUR: The ringgit opened firmer against the US dollar on Wednesday, supported by cautious optimism ahead of the looming Aug 1 tariff deadline. At 8.03 am, the local currency strengthened to 4.2195/2375 against the greenback, up from Tuesday’s close of 4.2300/2370.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to trade between RM4.22 and RM4.24 today as markets remain wary of potential tariff impacts. “Investors are adopting a guarded stance, waiting for clearer signals on trade policies,“ he noted.
SPI Asset Management managing partner Stephen Innes attributed the ringgit’s early gains to shifting macroeconomic conditions. “The US dollar is under pressure from falling Treasury yields and domestic political concerns, which is benefiting emerging market currencies like the ringgit,“ he said.
Innes added that the ringgit’s rebound reflects more than just a temporary bounce. “A softer dollar, renewed trade talks, and hopes for tariff relief are creating a favourable environment for the ringgit,“ he told Bernama. He also highlighted ongoing negotiations between Malaysia and the US, where Malaysian officials are reportedly seeking a reduced tariff rate of 15–20 per cent, compared to the proposed 25 per cent.
Against other major currencies, the ringgit showed mixed performance. It weakened against the Japanese yen to 2.8767/8891 from 2.8690/8739 and dipped versus the euro to 4.9528/9740 from 4.9512/9594. However, it edged higher against the British pound, rising to 5.7052/7295 from 5.7088/7183.
Regionally, the ringgit strengthened against the Singapore dollar to 3.3001/3144 from 3.3011/3071 and appreciated against the Indonesian rupiah to 258.5/259.7 from 259.1/259.7. It also gained slightly against the Philippine peso to 7.39/7.43 from 7.41/7.43. However, it slipped against the Thai baht to 13.1138/1767 from 13.0899/1172. - Bernama
