KUALA LUMPUR: The ringgit opened firmer against the US dollar on Monday, supported by a combination of external factors including expectations of a more accommodative policy stance by the United States (US) Federal Reserve (Fed), said an analyst.
At 8 am, the local note stood at 4.1840/2140 per dollar, stronger than Friday’s close of 4.1975/2080.
SPI Asset Management managing director Stephen Innes said the ringgit’s performance was also underpinned by resilient global equity markets and signs of easing trade tensions between Washington and Beijing.
“For a trade-sensitive currency like the ringgit, the combination of softer US yields, resilient risk appetite, and easing geopolitical overhang between the US and China is supportive,” he told Bernama.
The US and China on Monday announced a “framework” deal to resolve their dispute over TikTok, which calls for the Chinese-owned app to come under US-controlled ownership.
Innes said the TikTok framework deal was viewed less as a technology issue and more as a signal that tariff disputes and reciprocal trade measures may be cooling.
Meanwhile, the ringgit traded lower against a basket of major currencies.
It eased to 2.8591/8798 against the yen from 2.8373/8446 at Friday’s close, weakened to 5.7133/7542 against the British pound from 5.6864/7006, and slipped to 4.9660/5.0016 against the euro from 4.9203/9326.
Against ASEAN currencies, the local note was mixed.
It strengthened to 13.2092/3114 against the Thai baht from 13.2317/2703 and improved to 254.4/256.4 versus the Indonesian rupiah from 256.3/257.0.
However, it fell to 3.2800/3041 against the Singapore dollar from 3.2719/2803, and was flat against the Philippine peso at 7.35/7.41 compared with Friday’s 7.35/7.37. – Bernama
