Ringgit edges up despite stronger US dollar on rate hike expectations

The Malaysian ringgit started Tuesday’s trading session with a modest gain against the US dollar, despite the greenback’s strength due to rising interest rate expectations in the United States.

At 8am, the ringgit was trading at 4.0835/4.0895 per US dollar, slightly up from Monday’s closing rate of 4.0845/4.0890. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US dollar index (DXY) climbed 0.23% to 102.167 points, indicating a stronger US dollar.

Rashid explained that the ringgit was likely to stay within a tight trading range as the US dollar benefited from increased demand for safer assets amid global uncertainties. The ringgit also showed gains against other major currencies, including the Japanese yen and the British pound, but weakened slightly against the euro.

In regional trade, the ringgit’s performance was mixed. It strengthened against the Thai baht but weakened slightly against the Singapore dollar. The currency remained unchanged against the Philippine peso and the Indonesian rupiah.