Ringgit Opens Slightly Higher Against US Dollar
Opening Trade
The ringgit opened slightly higher against the US dollar at opening trade as the US Federal Reserve (Fed) does not seem inclined to reduce rates in the near term, said an analyst.
Current Exchange Rate
At 8 am, the ringgit strengthened to 4.4230/4375 against the greenback compared to Thursday’s close of 4.4320/4385.
Market Analysis
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar appears to be in a sweet spot now, and this scenario would pose a challenge to emerging market currencies, including the ringgit.
Resistance Level
“As such, the ringgit could flirt near its immediate resistance level of RM4.45 today,” he told Bernama.
Fed Rate
Mohd Afzanizam said that a series of Fed speakers have suggested interest rate cuts would need to be carefully crafted given the current US policy on tariff, tax, and immigration.
Fed Fund Rate
“Some of them also see that the current Fed Fund Rate is nearing its neutral rate – a rate neither contractionary nor expansionary,” he noted.
US Treasury Secretary
Furthermore, he added that the US Treasury Secretary Scott Bessent also reiterated the government’s stance on a strong dollar policy to remain intact.
Other Currencies
The ringgit was traded mixed against other major currencies. It was marginally higher against the British pound to 5.5009/5189 from 5.5090/5171 at Thursday’s close. However, it slid vis-a-vis the euro to 4.5933/6083 from 4.5920/5987 yesterday and fell against the Japanese yen to 2.9245/9345 from 2.9036/9080 previously.
ASEAN Currencies
The local note also traded mostly higher versus ASEAN currencies. It inched up against the Thai baht to 13.0912/1462 from 13.1175/1433 at yesterday’s close, appreciated vis-a-vis the Indonesian rupiah to 270.6/271.6 from 271.2/271.7 at Thursday’s close, and ticked up against the Philippines’ peso to 7.60/7.63 from 7.62/7.63 previously.
Singapore Dollar
However, the local note traded slightly lower against the Singapore dollar, edging down to 3.2758/2868 from 3.2742/2793 previously.
Conclusion
The ringgit’s performance against the US dollar is influenced by the Fed’s stance on interest rates and the overall economic landscape. As the ringgit is expected to flirt near its immediate resistance level, investors will be closely monitoring the market’s reaction to any potential interest rate cuts.
FAQs
* What is the current exchange rate of the ringgit against the US dollar?
The ringgit strengthened to 4.4230/4375 against the greenback compared to Thursday’s close of 4.4320/4385.
* What is the market analysis of the ringgit’s performance?
The ringgit is expected to flirt near its immediate resistance level of RM4.45 due to the US dollar’s strong stance and the potential for interest rate cuts.
* How did the ringgit perform against other major currencies?
The ringgit was traded mixed against other major currencies, with some minor fluctuations against the British pound, euro, Japanese yen, and Singapore dollar.