Ringgit Strengthens Slightly Against Dollar Amid Stronger Greenback

The Malaysian ringgit opened slightly stronger against the US dollar on Tuesday, despite lingering expectations of higher US interest rates. At 8 am, the ringgit was trading at 4.0835/0895 per US dollar, up from Monday’s close of 4.0845/0890.

Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the US dollar index (DXY) rose 0.23 percent to 102.167 points, indicating a firmer greenback. He suggested the ringgit was likely to remain within a narrow trading range due to this strength.

The US dollar also gained ground as investors sought safer assets amid global uncertainty. The ringgit performed well against most major currencies, rising against the Japanese yen to 2.5847/5886 and strengthening against the British pound to 5.3976/4055. However, it weakened slightly against the euro to 4.5805/5872.

Against regional currencies, the ringgit’s performance was mixed. It strengthened against the Thai baht to 12.1151/1390 but weakened slightly against the Singapore dollar to 3.1907/1957. The ringgit remained unchanged against the Philippine peso at 6.52/6.53 and the Indonesian rupiah at 227.9/228.3.