KUALA LUMPUR: The ringgit opened higher against the US dollar on Thursday, but trading remained range-bound as traders continued to monitor uncertainties surrounding US tariff policies.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid highlighted that the US Dollar Index (DXY) had dropped 0.83 per cent to 99.380 points.
At 8 am, the local currency rose 0.20 per cent to 4.3960/4080 versus the greenback, compared to Wednesday’s close of 4.4085/4135.
He said the decline in the DXY came after Federal Reserve (Fed) chairman Jerome Powell acknowledged significant uncertainties surrounding US tariff policies.
Mohd Afzanizam pointed out that Powell had also cautioned that the ongoing policy flip-flops could threaten the Fed’s dual mandate of ensuring price stability and full employment.
He added that US equity futures took a hit, reflecting market disappointment over indications that the Fed may adopt a cautious, wait-and-see approach, in contrast to expectations for a more decisive rate cut.
“Yesterday, the ringgit strengthened by 0.34 per cent against the US dollar to RM4.4110. Given the softer DXY, the US dollar-ringgit pair could trade within the RM4.4000 to RM4.4100 range today,” he told Bernama.
Meanwhile, the ringgit traded mostly lower against major currencies.
It dropped against the euro to 5.0088/0225 from 5.0072/0129 on Wednesday, eased versus the Japanese yen to 3.0947/1036 from 3.0861/0898, but appreciated vis-à-vis the British pound to 5.8159/8318 from 5.8488/8554 previously.
At the same time, the local note was traded mostly firmer against ASEAN currencies.
It was marginally higher against the Indonesian rupiah at 261.0/261.9 from 261.8/262.2, rose versus the Philippine peso at 7.74/7.77 from 7.76/7.78 and improved against the Singapore dollar to 3.3527/3623 from 3.3537/3578.
However, the ringgit was slightly lower vis-à-vis the Thai baht to 13.2810/3297 from 13.2547/2773.
