The ringgit opened firmer against the US dollar, tracking a weaker DXY as US-EU tensions over Greenland remarks intensified risk-off sentiment.
KUALA LUMPUR: The ringgit extended its gains to open firmer on Tuesday, tracking a weaker US Dollar Index (DXY) as tensions between the United States and the European Union intensified.
The local currency strengthened to 4.0475/0575 against the greenback from Monday’s close of 4.0520/0570.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY fell 0.35% to 99.050 points, signalling a clear shift into risk-off sentiment.
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He noted gold has emerged as a safe haven for traders and investors amid the geopolitical concerns.
Afzanizam also highlighted the International Monetary Fund’s revised global growth forecast.
The IMF raised its 2026 global GDP growth forecast by 0.2 percentage points to 3.3%, supported by stronger AI investment and accommodative monetary conditions.
“On a similar note, Malaysia’s 2026 GDP growth forecast was revised up by 0.3 percentage points to 4.3%,” he told Bernama.
He expects the ringgit to stay in rangebound trade given the risk-off mode and the IMF’s positive assessment.
The ringgit was mixed against a basket of major currencies.
It rose against the Japanese yen to 2.5591/5656 from 2.5657/5692 and edged up against the British pound to 5.4313/4448 from 5.4321/4388.
However, it was marginally lower versus the euro at 4.7109/7225 from 4.7100/7159.
The local note was mostly firmer against ASEAN currencies.
It gained against the Singapore dollar to 3.1491/1571 from 3.1521/1562 and appreciated versus the Thai baht to 12.9454/9886 from 12.9623/9845.
The ringgit also strengthened against the Indonesian rupiah to 238.7/239.4 from 239.0/239.3.
It was little changed versus the Philippine peso at 6.81/6.83 from 6.81/6.82. – Bernama
