The ringgit opened slightly higher against the US dollar this morning, despite increased demand for the safe-haven currency amid ongoing global economic uncertainty and rising geopolitical risks, analysts said.
At 8am, the ringgit was trading at 4.4575/4700, up 0.16% against the US dollar, from yesterday's close of 4.4645/4700.
Bank Muamalat Chief Economist Afzanizam Rashid said the ringgit was still in an oversold position and could potentially attract traders to accumulate the currency.
This comes as Bank Negara Malaysia is expected to maintain monetary policy in 2025, in contrast to regional countries such as Indonesia and the Philippines which have begun cutting interest rates.
Globally, the US dollar remained firm with the US Dollar Index (DXY) above 107.96, driven by expectations that the Fed will adopt a slower approach to interest rate cuts in 2025.
The Fed’s neutral rate is expected to be around 3%, with a cut of 50 basis points in 2025.
The ringgit rose against several major currencies.
It strengthened against the British pound to 5.5933/6090 from 5.6146/6215 and rose against the euro to 4.6385/6515 from 4.6583/6640.
However, the ringgit depreciated slightly against the Japanese yen to 2.8388/8471 from 2.8278/8314.
The ringgit also outperformed its ASEAN peers.
It strengthened against the Singapore dollar to 3.2788/2882 from 3.2890/2935 previously and rose against the Indonesian rupiah to 276.1/277.0 from 276.5/277.0.
The ringgit also rose against the Thai baht to 13.0428/0905 from 13.0905/1139 and strengthened against the Philippine peso to 7.69/7.72 from 7.70/7.72.
