KUALA LUMPUR: The ringgit extended its upward trend at Tuesday’s open, buoyed by persistent weakness in the US dollar.
At 8.01 am, the local currency strengthened to 4.1955/2160 against the greenback from Monday’s close of 4.2060/2130.
The US Dollar Index (DXY) slipped further to 96.875 as investors awaited key economic data, with the 90-day pause period approaching its end.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the yields on two- and 10-year US Treasury notes declined by one and five basis points, respectively, as expectations grew that the US Federal Reserve (Fed) may ease monetary policy in the second half of the year.
“President Trump continues to assert on social media that interest rates should be lowered. This reinforces the view that the next Fed chair may adopt a more dovish stance,” he told Bernama.
Meanwhile, Brent crude slipped 0.24 per cent to US$67.61 per barrel. Market attention is on the upcoming OPEC+ meeting on Sunday, where member countries are expected to raise output quotas to reclaim market share.
At the open, the ringgit was mixed against major currencies but mostly higher versus its ASEAN peers.
It weakened against the Japanese yen to 2.9190/9335 from 2.9156/9206, slipped versus the British pound to 5.7617/7898 from 5.7597/7693, and eased against the euro to 4.9457/9698 from 4.9290/9372.
The ringgit also depreciated against the Singapore dollar to 3.3009/3176 from 3.2986/3034, but gained on the Thai baht at 12.9331/13.0059 from 12.9356/9627, strengthened against the Indonesian rupiah to 258.3/259.7 from 259.0/259.5, and firmed against the Philippine peso to 7.44/7.49 from 7.46/7.48.
