Malaysia’s ringgit opened flat against the US dollar but firmed versus major currencies, supported by strong trade data.
KUALA LUMPUR: The ringgit opened flat against the US dollar but mostly higher against other major currencies on Tuesday, supported by Malaysia’s strong economic data, which helped cushion the impact of heightened global market volatility.
On Monday, the Department of Statistics Malaysia (DOSM) announced that Malaysia’s exports expanded 45.4% to RM177.9 billion and imports rose 43.9% to RM163.0 billion, with the trade surplus surging by 64.9% to RM14.9 billion in the month reviewed.
At 8 am, the local currency stood at yesterday’s close at 4.0895/0950 against the greenback.
SPI Asset Management managing partner Stephen Innes said the broader US dollar was trading a touch firmer across the board this morning as oil prices briefly rose on US President Donald Trump’s warning that Iran would “pay” for the deaths of American servicemen, alongside fresh Houthi threats against Saudi shipping in the Red Sea.
At the time of writing, Brent crude fell 0.12% to US$82.38 per barrel while West Texas Intermediate dropped 0.45% to US$88.82 per barrel.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to maintain its narrow range trade against the US dollar, possibly around 4.09 to 4.10.
“The US dollar index (DXY) remains elevated at 100.996 points as risk appetite among traders is weak.
“The situation in the Middle East continues to be the focus as Yemen’s Iran-aligned Houthis said they would impose a naval blockade on Saudi Arabia (for vessels) that pass the Bab el-Mandeb Strait,” he told Bernama.
The ringgit also traded firmer against a basket of major currencies.
It edged up against the British pound to 5.4926/5000 from 5.5049/5123 at Monday’s close, strengthened versus the euro to 4.6686/6749 from 4.6743/6806, and appreciated against the Japanese yen to 2.5169/5205 from 2.5177/5212.
The local currency also traded mixed against most regional peers.
It rose slightly against the Singapore dollar to 3.1675/1722 from yesterday’s close of 3.1677/1722, strengthened versus the Thai baht to 12.1512/1734 from 12.1556/1759, was unchanged against the Indonesian rupiah to 227.8/228.2 and flat against the Philippine peso at 6.63/6.64.
