The ringgit opens higher against the US dollar, supported by domestic flows and a weaker greenback ahead of key Federal Reserve meeting minutes.
KUALA LUMPUR: The ringgit extended its gains, opening slightly higher against the US dollar on Tuesday as the greenback weakened.
At 8 am, the local currency strengthened to 4.0500/0670 against the US dollar from Monday’s close of 4.0580/0625.
Market focus is on the release of the Federal Open Market Committee meeting minutes later today.
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Investors are also pricing in the possibility of further US interest rate cuts in 2026.
IPPFA Sdn Bhd director of investment strategy Mohd Sedek Jantan said the ringgit’s resilience is increasingly anchored by domestic flow dynamics.
“Export conversion, portfolio inflows and corporate hedging activity continue to favour the ringgit,” he told Bernama.
He said this creates a persistent supply of US dollars in the local market.
“Any intraday US dollar upticks are likely to be met by exporter selling and real money demand for ringgit assets,” he added.
The ringgit was mixed against other major currencies at the opening.
It strengthened against the euro to 4.7677/7877 from 4.7787/7840.
It was slightly higher versus the British pound at 5.4711/4941 from 5.4742/4803.
However, it depreciated against the Japanese yen to 2.5970/6082 from 2.5956/5987.
The local note was firmer against all its ASEAN peers.
It rose against the Singapore dollar to 3.1505/1642 from 3.1572/1610.
It gained versus the Thai baht to 12.7910/8540 from 12.8985/9190.
It strengthened against the Indonesian rupiah to 241.2/242.3 from 241.7/242.1.
It was also higher against the Philippine peso at 6.88/6.92 from 6.90/6.91. – Bernama
