The ringgit extended its gains to open higher against the US dollar on Monday, as the greenback weakened to a fresh three-year low amid escalating US-China trade tensions.
At 8am, the local unit rose 1.06% to 4.4185/4.4270 against the greenback, compared with 4.4200/4.4265 at last Friday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) had fallen below the 100-point mark, a move he described as puzzling given heightened risk aversion over trade and tariff uncertainties.
He noted that while US President Donald Trump announced a reprieve on tariffs for smartphones and computers over the weekend, market sentiment remained fragile.
“US data, particularly the University of Michigan Consumer Sentiment Index, dropped to 50.8 points in April, suggesting consumers may stay cautious with their spending.
“On that note, we sense that the dollar-ringgit is likely to stay within a narrow range, though with a slight positive bias, as the DXY has declined quite significantly,” he added.
The ringgit also traded higher against several major currencies.
It strengthened against the Japanese yen to 3.0761/3.0822 from 3.0952/3.1000, rose against the euro to 5.0123/5.0220 from 5.0207/5.0281, and edged up against the British pound to 5.7820/5.7932 from 5.7849/5.7934.
Meanwhile, the local note was mixed against Asean currencies.
It was slightly higher against the Singapore dollar at 3.3491/3.3566 from 3.3495/3.3549, but weakened against the Thai baht to 13.1778/13.2141 from 13.1599/13.1902.
The local note was little changed against the Indonesian rupiah at 263.0/263.7 compared with 263.1/263.6 previously, and held steady against the Philippine peso at 7.75/7.77. - FMT
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