Ringgit rebounds against US dollar amid improved risk appetite
KUALA LUMPUR, May 28 — The ringgit rebounded to close higher against the US dollar today, supported by improved risk appetite for the local note despite prevailing global uncertainties.
At 6pm, the local note rose to 4.2215/2275 versus the US dollar from Tuesday's close of 4.2345/2430.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the greenback is looking weaker at the moment despite stronger United States (US) economic data and the recent tariff-related trade policy shifts.
'Concurrently, foreign investor confidence in Malaysia has been gradually improving, underpinned by a pragmatic fiscal consolidation strategy that supports a cautiously optimistic outlook.
'The government remains prudent in advancing fiscal reforms, targeting a reduction in the budget deficit to approximately three per cent of gross domestic product (GDP) and maintaining the statutory debt limit at 65 per cent of GDP over the medium term,' he told Bernama.
Afzanizam noted that US economic data looked favourable last night with the US Conference Board Consumer Confidence Index climbing to 98.0 points in May from 85.7 points in April.
'The postponement of the US tariff on the EU to July 9 also implies that the US President Donald Trump's administration is receptive and willing to negotiate for better terms,' he added.
At the close, the ringgit traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.9271/9315 from Tuesday's close of 2.9425/9486, gained vis-à-vis the euro to 4.7838/7906 from 4.8053/8150 yesterday and appreciated against the British pound to 5.7028/7109 from 5.7352/7467 previously.
The local note also traded higher against its Asean peers.
It strengthened against the Singapore dollar to 3.2776/2825 from 3.2894/2963 on Tuesday and inched up against the Thai baht to 2.9355/9614 from 12.9365/9676 yesterday.
The ringgit edged higher vis-à-vis the Philippine peso to 7.60/7.62 from 7.62/7.64 at yesterday's close and rose versus the Indonesian rupiah to 259.0/259.5 from 259.9/260.6 previously. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
2 hours ago
- BusinessToday
Ringgit Breaking 4.20 Hinges On Upcoming Economic Data
After a brief dip to 4.26 against the US dollar last Friday, the Malaysian Ringgit (MYR) showed resilience this week, trading within the expected 4.23–4.25 range. This recovery was partly attributed to a subdued US Dollar Index (DXY), as reported by Kenanga Research. The US dollar experienced initial pressure following increased US tariffs on steel and aluminum, coupled with threats of a 'revenge tax' from President Donald Trump. Further weakness came from a softer ISM manufacturing print and growing fiscal concerns. However, the greenback later rebounded on stronger JOLTs job openings data and renewed optimism surrounding potential trade talks between the US and China. Despite this rebound, softer ADP private payroll figures and rising jobless claims have signaled potential cracks in the US labor market. Globally, Thursday's European Central Bank (ECB) rate cut had minimal impact on bolstering the USD. The Euro managed to hold its gains amid indications that further easing might be paused soon. Market attention now shifts to tonight's Non-Farm Payrolls (NFP) data. A figure below 100,000 new jobs could intensify recession fears and strengthen the case for a US Federal Reserve rate cut. However, markets are likely to await next week's core inflation data, which is anticipated to show a 0.3% month-over-month increase, before making significant moves. Looking ahead, Kenanga Research notes lingering concerns about renewed trade and bond market volatility once the 90-day US reciprocal tariffs pause concludes in July. The trajectory of US-China negotiations will be critical. A breakthrough in these talks could offer the US dollar short-term support, although fiscal-driven term premiums might cap any substantial gains. Domestically, the Ringgit's performance will hinge on upcoming economic indicators. If industrial production (IPI) and retail sales data point to continued economic resilience in Malaysia, the Ringgit could appreciate further. Kenanga Research suggests the Ringgit could potentially test the 4.21–4.24 per US dollar range next week. Technically, the USDMYR currency pair remains neutral, trading close to its 5-day Exponential Moving Average (EMA) of 4.24. Near-term direction is expected to be guided by trade-related headlines, with immediate support identified at 4.22 and resistance at 4.25. USD GBP EUR JPY100 CHF AUD CAD SGD HKD100 3 Jun 2025 4.2390 5.7426 4.8509 2.9704 5.1885 2.7522 3.0894 3.2982 54.0382 4 Jun 2025 4.2490 5.7474 4.8366 2.9508 5.1597 2.7451 3.0983 3.2947 54.1636 5 Jun 2025 4.2325 5.7395 4.8375 2.9667 5.1764 2.7518 3.0956 3.2942 53.9509 6 Jun 2025 4.2250 5.7367 4.8376 2.9395 5.1512 2.7503 3.0916 3.2851 53.8508 Related
Malay Mail
3 hours ago
- Malay Mail
Ringgit eyes stability next week as markets await US CPI, PPI
KUALA LUMPUR, June 7 — The ringgit is likely to trade around RM4.22 to RM4.23 next week, said an analyst. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said that next week multiple United States (US) economic data will be out, namely the US Consumer Price Index (CPI) and Producer Price Index (PPI) for the month of May which plays a key role in shaping the market. 'While the data might show deceleration in inflation rate, the US Federal Reserve is likely to stay cautious as it is wary about the potential inflationary pressures arising from the tariff shocks. 'Already, responses from the US Institute for Supply Management (ISM) Index survey indicated that businesses have become more pessimistic as the higher tariffs have affected the supply chains and resulted in higher operating costs,' he told Bernama. The ringgit ended the week higher against the US dollar, closing at 4.2270/2360 on Friday from 4.2530/2605 a week earlier. The local note traded mostly higher against a basket of major currencies. The ringgit rose vis-à-vis the Japanese yen to 2.9324/9390 from 2.9531/9585 and inched higher against the British pound to 5.7212/7334 from 5.7284/7385 a week earlier. However, it depreciated versus the euro to 4.8268/8371 at Friday's close from 4.8169/8254 at the end of last week. The ringgit traded mostly higher against Asean currencies. The local note improved against the Singapore dollar to 3.2862/2934 on Friday from 3.2938/3002 the previous week, edged higher versus the Indonesian rupiah to 259.5/260.2 from 260.4/261.1 and stronger vis-a-vis the Philippine peso to 7.58/7.60 from 7.62/7.64 a week before, However, it weakened versus the Thai baht to 12.9599/9947 from 12.9507/9790 last week. — Bernama
Malay Mail
3 hours ago
- Malay Mail
Middle East-based engineer loses RM1.5m in online investment scheme, discovers scam only after failed withdrawal attempt
BUKIT MERTAJAM, June 7 — An engineer working in the Middle East lost over RM1.5 million to an online investment scam recently. Penang police chief Datuk Hamzah Ahmad sad the victim, 40, lodged a report with the Central Seberang Perai district police headquarters commercial crimes investigation division yesterday. 'In November last year the man got to know a woman through the phone and had a relationship before the woman invited him to join an investment scheme called GoldenCrimson that offered handsome returns. 'The man was interested to invest and was given a customer service number and a website link to register, and he invested RM90,510 and received returns of RM108,611,' he said in a statement tonight. The man grew confident in the scheme and made 103 transactions to 31 different accounts totalling RM1,532,563 from Dec 2 to March 8, and realised he was scammed when he failed to withdraw RM4,131,671 through the app but was asked instead to provide additional capital to be able to withdraw his profits. The case is being investigated under Section 420 of the Penal Code. — Bernama
