The ringgit opened higher against the US dollar on Thursday, but trading remained range-bound as traders continued to monitor uncertainty over US tariff policy.
At 10.15am, the ringgit was at 4.4110, flat against the US dollar from its close of 4.4085 at Wednesday’s close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid highlighted that the US Dollar Index (DXY) had fallen 0.83 per cent to 99.380 points.
He said the decline in the DXY came after Federal Reserve (Fed) chairman Jerome Powell acknowledged significant uncertainty surrounding US tariff policy.
Powell also warned that continued policy changes could threaten the Fed’s mission to stabilise prices.
US stock markets were also affected, reflecting disappointment over indications that the Fed may adopt a more cautious approach.
Yesterday, the ringgit strengthened by 0.34 percent against the US dollar to RM4.4110. Given the weaker DXY, the USD/MYR pair is expected to hover in the range of RM4.4000 to RM4.4100 today.
Meanwhile, the ringgit was mostly traded lower against major currencies.
It fell against the euro to 5.0088/0225 from 5.0072/0129 on Wednesday, depreciated against the Japanese yen to 3.0947/1036 from 3.0861/0898, but rose against the British pound to 5.8159/8318 from 5.8488/8554 previously.
At the same time, the local currency was mostly traded stronger against Asean currencies.
It was slightly higher against the Indonesian rupiah at 261.0/261.9 from 261.8/262.2, up against the Philippine peso at 7.74/7.77 from 7.76/7.78 and up against the Singapore dollar to 3.3527/3623 from 3.3537/3578.
However, the ringgit was slightly lower against the Thai baht at 13.2810/3297 from 13.2547/2773.
