Ringgit opens higher on US-Malaysia trade deal boost
The ringgit continued to open higher against the US dollar on Tuesday, buoyed by recent US-Malaysia trade deals that have increased appetite for the local currency, an analyst said.
At 8am, the ringgit appreciated to 4.2040/4.2140 per US dollar from 4.2085/4.2135 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the signed deals should have a positive impact on the ringgit, as Malaysia continues to maintain good relations with foreign countries.
“The nation’s foreign and trade policies are consistently geared towards promoting greater global integration, especially in areas related to the supply chain,” he noted.
Meanwhile, Afzanizam said the US dollar index declined 0.17% to 98.783 points amid optimism that the United States and China would reach an amicable trade deal ahead of the meeting between the two leaders on Thursday.
At the same time, anticipation of a 25-basis-point interest rate cut by the US Federal Reserve on Wednesday also added to market euphoria.
“In light of the market optimism, the ringgit could make another attempt to break the RM4.20 level today,” he said.
At the opening, the ringgit also traded mostly higher against major currencies.
It climbed against the Japanese yen to 2.7538/2.7606 from 2.7550/2.7582 at Monday’s close, gained against the British pound to 5.6077/5.6211 from 5.6158/5.6225, but slipped versus the euro to 4.8981/4.9097 from 4.8974/4.9032.
The local note traded stronger against most Asean currencies.
It inched up against the Singapore dollar to 3.2433/3.2513 from 3.2460/3.2502 at Monday’s close, edged up vis-à-vis the Indonesian rupiah to 252.9/253.6 from 253.1/253.6, and strengthened versus the Philippine peso to 7.13/7.16 from 7.14/7.16 previously.
However, the ringgit weakened versus the Thai baht to 12.8767/12.9145 from 12.8633/12.8837 at Monday’s close.
