KUALA LUMPUR: The ringgit extended gains, opening stronger against the US dollar on Tuesday, supported by ongoing positive sentiment towards the local currency, said an analyst.
At 8 am, the ringgit rose to 4.1835/2035 against the greenback, compared to Monday’s close of 4.1990/2035.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there appears to be speculation that potential trade deals would be achieved as the US tariff shocks are likely to severely dent the US economic growth.
“On that note, we shall expect the ringgit to remain strong against the US dollar today,” he told Bernama.
He noted that the US Dollar Index (DXY) continues to linger below the 100-point level at 99.831, despite a better-than-expected US Institute for Supply Management (ISM) Index reading for the services sector, which rose to 51.6 points in April (Consensus: 50.2 points).
Meanwhile, market sentiment was also supported by the Special Parliamentary Session on the US tariffs held yesterday, during which the government expressed its readiness to take necessary steps to mitigate the impact of the tariff shocks imposed by US President Donald Trump.
The ringgit traded higher against a basket of major currencies.
It rose versus the Japanese yen to 2.9111/9252 from 2.9192/9225 at Monday’s close, strengthened vis-a-vis the euro to 4.7320/7546 from 4.7629/7680 previously, and gained against the British pound to 5.5595/5860 from 5.5868/5928.
Similarly, the ringgit performed better against its ASEAN peers.
It was higher versus the Singapore dollar at 3.2410/2573 compared to Monday’s close of 3.2644/2682 and gained vis-a-vis the Thai baht to 12.6942/7692 from 12.7497/7747.
The local note also improved against the Philippine peso to 7.50/7.54 from 7.53/7.54 on Monday and appreciated versus the Indonesian rupiah to 254.1/255.5 from 255.1/255.5.
