The ringgit strengthened to 4.0580/0685 against the US dollar as market worries over Fed independence weighed on the greenback.
KUALA LUMPUR: The ringgit extended its gains against the US dollar at Tuesday’s opening, supported by a weaker greenback.
Market sentiment was influenced by growing concerns over the independence of the United States Federal Reserve.
At 8 am, the local currency strengthened to 4.0580/0685 against the US dollar from Monday’s close of 4.0605/0660.
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Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said worries about the Fed’s independence negatively impacted the US dollar.
The US Dollar Index fell 0.24% to 98.894 points.
Consequently, the ringgit gained 0.24% against the greenback on Monday.
“The constant attack by the Trump administration on the US Fed has obscured how traders and investors would read the direction of the US dollar,” he told Bernama.
He noted the tension stems from the Fed’s reluctance to ease its monetary policy.
This dynamic appears to benefit the local unit in the short term.
The ringgit versus US dollar is expected to range between RM4.05 to RM4.06 today.
At the opening, the ringgit traded mostly higher against a basket of major currencies.
It strengthened versus the Japanese yen to 2.5677/5747 from 2.5717/5754.
It edged up against the euro to 4.7345/7467 from 4.7435/7499.
However, it weakened against the British pound to 5.4641/4782 from 5.4630/4704.
The local note traded higher against most of its ASEAN peers.
It was flat against the Philippine peso at 6.85/6.87 compared with yesterday’s close of 6.85/6.86.
The ringgit inched up against the Indonesian rupiah to 240.7/241.4 from 240.9/241.3.
It rose versus the Singapore dollar to 3.1558/1644 from 3.1567/1613.
It also increased against the Thai baht to 12.9852/13.0267 from 12.9961/13.0195. – Bernama
