Ringgit Opens Higher Against Greenback On Weaker US Economic Outlook, Tariff Concerns
By Danni Haizal Danial Donald
KUALA LUMPUR, May 21 (Bernama) -- The ringgit opened stronger against the US dollar on Wednesday as the greenback weakened on a softer United States (US) economic outlook amid tariff concerns, an analyst said.
At 8 am, the local note rose to 4.2790/2960 against the greenback from Tuesday's close of 4.2950/3010.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there is a noticeable sense of uncertainty about the future of the US economy due to ongoing concerns about tariffs, which might affect prices and economic growth.
'The US Dollar Index (DXY) was seen declining by 0.31 per cent to 100.118 points while the US equity prices fell as it entered an overbought territory.
'However, the US Treasury yields rose as the recent sovereign rating downgrade on the US government may stall plans for expansionary fiscal policy,' he told Bernama.
Mohd Afzanizam also said market sentiments will remain guarded as the US dollar-ringgit is expected to stay range-bound between 4.28 and 4.29.
'Additionally, Malaysia's exports figure turns out to be better-than-expected in April at 16.4 per cent versus 7.5 per cent estimates among the consensus.
'Therefore, this could explain why Bank Negara Malaysia may have refrained from resorting to an outright cut in the overnight policy rate last week as they would want to gather more information in order to prescribe monetary easing,' he added.
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