Ringgit Marginally Up as Dollar Eases After US Election Rally

Market Corrections Support Ringgit’s Slight Rebound

The ringgit opened marginally higher against the US dollar on Tuesday, lifted by a brief easing in the dollar’s strength after an election-driven surge, analysts said. Market corrections supported the ringgit’s slight rebound, analysts noted, as traders recalibrated their positions following recent currency market fluctuations.

Ringgit Opens at 4.4080/4.4200 Against US Dollar

At 8.05am, the ringgit inched up to 4.4080/4.4200 against the US dollar, compared to Monday’s close of 4.4090/4.4120.

US Dollar Strength Bolstered by Speculation on Tariffs

SPI Asset Management managing director Stephen Innes said that the US dollar’s strength has been bolstered by speculation surrounding the potential reintroduction of Trump-era tariffs. “This scenario is generally unfavourable for Asean’s export-driven economies,” he said.

Rally in US Dollar Initially Sparked by Rumours of Lighthizer’s Return

Innes added that the recent rally in the US dollar was initially sparked by late-Friday rumours that Trump might reinstate his “Tariff Titan,” Robert Lighthizer, as trade representative. “Although Reuters quickly tempered the excitement with insider denials, foreign exchange (FX) traders remain vigilant,” he added.

Ringgit Rises Against Other Major Currencies

At the opening, the ringgit was mostly higher against a basket of major currencies. It rose against the British pound to 5.6735/5.6890 from 5.6872/5.6910 and advanced against the euro to 4.6998/4.7126 from 4.7088/4.7120 at Monday’s close. However, it was marginally lower against the Japanese yen, slipping to 2.8705/2.8785 from 2.8701/2.8722 previously.

Ringgit Trades Higher Against Asean Currencies

The ringgit traded higher against Asean currencies. It strengthened against the Singapore dollar at 3.3056/3.3151 from 3.3120/3.3148 and gained against the Thai baht at 12.7698/12.8138 from 12.8243/12.8390 at Monday’s close. It was nearly flat against the Philippine peso at 7.52/7.54 from 7.52/7.53, and also mostly steady against the Indonesian rupiah at 280.9/281.8 from 280.9/281.3 previously.

Conclusion

The ringgit’s slight rebound is a result of market corrections and a brief easing in the dollar’s strength after an election-driven surge. The US dollar’s strength has been bolstered by speculation surrounding the potential reintroduction of Trump-era tariffs, which may cause volatility in Asian FX markets.

FAQs

Q: Why did the ringgit open marginally higher against the US dollar?
A: The ringgit opened marginally higher against the US dollar due to a brief easing in the dollar’s strength after an election-driven surge.

Q: What is driving the US dollar’s strength?
A: The US dollar’s strength has been bolstered by speculation surrounding the potential reintroduction of Trump-era tariffs.

Q: How did the ringgit perform against other major currencies?
A: The ringgit rose against the British pound and advanced against the euro, but was marginally lower against the Japanese yen.