KUALA LUMPUR: The ringgit continued its upward momentum against the US dollar at the opening today, supported by a weaker US Dollar Index (DXY) and growing concerns over US fiscal policies.
At 8.01 am, the local currency rose to 4.2190/2365 against the greenback, up from Thursday’s close of 4.2300/2355. The DXY slipped 0.26 per cent to 97.151 points, reflecting market unease over potential US tax cuts and spending reductions.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Senate is debating tax cuts, Medicaid spending reductions, and clean energy subsidy cuts. “The Congressional Budget Office estimates these measures could widen fiscal deficits by US$3.3 trillion from 2025 to 2034, leaving 11.8 million Americans uninsured by 2034,“ he told Bernama.
The proposed bill, with a deadline of July 4, 2025, could further strain US government creditworthiness, pressuring the dollar. “We expect the ringgit to remain firm, trading between RM4.22 and RM4.23 against the US dollar,“ Mohd Afzanizam added.
The ringgit also gained against major and regional currencies. It strengthened against the Japanese yen (2.9185/9308 from 2.9359/9399), British pound (5.7876/8116 from 5.8141/8217), and euro (4.9472/9677 from 4.9597/9661).
Among ASEAN peers, it appreciated versus the Singapore dollar (3.3067/3207 from 3.3192/3240) and Thai baht (12.9179/9795 from 13.0254/0488). Marginal gains were seen against the Indonesian rupiah (260.4/261.7) and Philippine peso (7.46/7.50).
