The ringgit opened stronger for the third consecutive day against the US dollar supported by a decline in the US Dollar Index (DXY) as investors awaited further signals from the Donald Trump Administration on developments in trade policy.
At 9.50am, the ringgit was at 4.4570, up 0.36% against the USD from its close of 4.4730 at the end of Tuesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the DXY was reported to have fallen to 107.981 points, the lowest since December 27, 2024.
He added that the currency market may be cautious and will focus on the 47th US President’s trade policy on import tariffs.
Trump has indicated that his administration is discussing a 10% import tariff to be imposed on China as well as the embattled Mexico and Canada.
While such a move is not surprising, it does indicate that the level of tariff imposition will be measured and will be implemented after due consideration.
So far, there is a risk-on mode in the equity market and a fall in US Treasury yields.
The ringgit is likely to move positively although the currency market will remain cautious in the near term and will hover around RM4.47 to RM4.48.
At the open, the ringgit was mostly traded lower against major currencies.
It eased against the euro to 4.6478/6608 from Tuesday's close of 4.6291/6343 and fell against the British pound to 5.5102/5256 from 5.4781/4842, but edged higher against the Japanese yen to 2.8682/8765 from 2.8682/8765.
The ringgit was mostly traded lower against Asean currencies.
It weakened against the Thai baht to 13.1349/1810 from 13.1123/1347, fell against the Indonesian rupiah to 273.2/274.1 from 273.6/274.1, and edged lower against the Singapore dollar to 3.2969/3064 from 3.2899/2941.
However, it rose against the Philippine peso to 7.63/7.66 from 7.65/7.66 on Tuesday.
