Ringgit rises despite higher US dollar index

 The local note opens higher at 4.3190/4.3330 as the greenback maintains its safe-haven appeal.

KUALA LUMPUR:

 The ringgit opened higher and maintained its uptrend against the US dollar in the early session on Wednesday, despite the greenback maintaining its appeal as a safe-haven currency following a 0.23% gain in the US Dollar Index (DXY) to 99.237 points.

At 8.05am, the local currency was higher at 4.3190/4.3330 versus the greenback compared with Tuesday’s close of 4.3245/4.3300.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said there seems some hope that the US economy could weather the tariff storm better.

“The US Federal Reserve (Fed) may step up its efforts to avoid recession by cutting interest rates,” he noted.

He said that some profit-taking activities could take place in light of the ringgit’s recent appreciation.

“On that note, the dollar-ringgit rate can range between RM4.32 to RM4.34 today,” he added.

In the early session, the ringgit traded mostly lower against a basket of major currencies.

It fell versus the Japanese yen to 3.0373/3.0473 from 3.0301/3.0341 at yesterday’s close and weakened vis-a-vis the British pound to 5.7931/5.8119 from 5.7927/5.8000 previously. However, it gained against the euro to 4.9202/4.9362 from 4.9217/4.9280.

Meanwhile, the ringgit performed better against its Asean peers.

It was slightly higher versus the Singapore dollar to 3.3025/3.3137 from 3.3027/3.3074 at Tuesday’s close and strengthened against the Thai baht to 12.9033/12.9587 from 12.9399/12.9629.

The local note also gained vis-a-vis the Philippine peso to 7.69/7.72 from 7.70/7.72 on Tuesday and rose slightly against the Indonesian rupiah to 257.6/258.6 from 257.9/258.4. - FMT