Ringgit opens nearly flat amid slight uptick in DXY

 

KUALA LUMPUR: 

The ringgit opened nearly flat against the US dollar on Wednesday, as the US Dollar Index (DXY) edged up slightly to 100.215 points after staying below the 100-point mark in recent days.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the market’s cautious tone to ongoing uncertainties surrounding US tariff policies.

As of 8am, the local currency stood at 4.4100/4.4200 against the greenback, compared to Tuesday’s close of 4.4100/4.4155.

He noted that the direction of tariff policies remains uncertain, with no clear indication yet on whether China will yield to US pressure to initiate negotiations in the ongoing trade war.

“The negative performance in US equity futures also points to potentially weaker corporate earnings ahead, likely due to the impact of steep tariffs on China.

“Given the stronger DXY, the dollar-ringgit is expected to trade within the 4.41 to 4.42 range today,” he added.

Meanwhile, the ringgit traded firmer against major currencies.

It gained against the euro to 4.9815/4.9928 from 4.9996/5.0059 at the close on Tuesday, increased versus the Japanese yen to 3.0818/3.0890 from 3.0852/3.0895 and was slightly higher vis-a-vis the British pound to 5.8353/5.8485 from 5.8366/5.8439.

At the same time, the local note traded mixed against Asean currencies.

The ringgit strengthened against the Singapore dollar to 3.3455/3.3536 from 3.3498/3.3545 previously but eased against the Thai baht to 13.1815/13.2201 from 13.1461/13.1708.

It was almost flat against the Indonesian rupiah at 262.0/262.7 compared to 262.0/262.5 and slipped slightly versus the Philippine peso to 7.76/7.79 from 7.76/7.78. - FMT