Malaysian ringgit improves against dollar

The Malaysian ringgit strengthened on Tuesday against the US dollar as the greenback weakened, Maly Mail reported. The ringgit traded at 4.6900/6950 against the dollar at 9:00 am (Malaysian time), up from yesterday’s closing rate of 4.6940/6990.

Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd., cautioned that the ringgit’s gains may be short-lived.

However, Rashid anticipates a shift in market sentiment as the US market reopens and investors digest crucial inflation data. This includes the release of the US Federal Reserve’s preferred inflation gauge and the Personal Consumption Expenditures (PCE) price index.

Several Fed officials are also expected to comment on the state of the US economy, likely reiterating the need for a restrictive monetary policy to curb inflation and bring it closer to their two per cent target, Rashid told Bernama.

At the opening bell, the ringgit displayed gains against a basket of major currencies. It appreciated against the Japanese yen, moving to 2.9888/9924 from 2.9919/9953 on Monday. Similarly, it edged up against the euro, reaching 5.0952/1006 compared to 5.1005/1059 previously.

However, the ringgit experienced a slight decline against the British pound, trading at 5.9891/9955 versus yesterday’s 5.9881/9945.

The ringgit also fared well against its regional peers. It strengthened against the Singapore dollar, rising to 3.4769/4809 from 3.4799/4838. It also appreciated against the Thai baht, reaching 12.8100/8282 compared to 12.8132/8321.

The local currency gained against the Indonesian rupiah, climbing to 291.7/292.3 from 292.0/292.5. Finally, it witnessed a slight improvement against the Philippine peso, trading at 8.07/8.09 from 8.08/8.09 previously.