The ringgit continued its upward momentum against the US dollar on Monday, supported by growing expectations of a US Federal Funds Rate cut that triggered a sharp decline in the US Dollar Index (DXY).
At 9.40am, the ringgit was at 4.4100, positive against the USD from where it closed at 4.4110 late Friday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US DXY had eased to 103.830 points, suggesting further upside potential for the ringgit.
He highlighted that the latest US job market data showed signs of a weakening trend, with the labour force participation rate falling to 62.4%, the lowest since January 2023.
The level of economic uncertainty has increased as tariff policies can be seen as inconsistent, making it difficult to assess the impact on the broader economy.
Dr Afzanizam added that overall market sentiment is likely to remain defensive in the near term.
Meanwhile, the ringgit strengthened against a basket of major currencies.
It rose against the British pound to 5.7011/7172 from 5.7070/7115 at Friday's close, rose against the euro to 4.7876/8012 from 4.7903/7941, and rose against the Japanese yen to 2.9872/9961 from 2.9909/9935.
Against Asean currencies, the ringgit performed well, rising against the Singapore dollar to 3.3152/3251 from 3.3185/3214 last Friday.
It also rose against the Thai baht to 13.0657/1109 from 13.1124/1290 and rose against the Indonesian rupiah to 270.5/271.4 from 270.6/271.0. However, it remained unchanged against the Philippine peso at 7.71/7.74 from 7.71/7.73 previously.
