Ringgit On Firmer Footing Against US Dollar In Early Trade
By Siti Radziah Hamzah
KUALA LUMPUR, July 25 (Bernama) -- The ringgit opened on a slightly firmer footing against the US dollar this morning, shrugging off the broader G10 currencies' weakness as a confluence of domestic optimism and regional tailwinds lifted sentiment, said an analyst.
At 8.07 am, the local note rose to 4.2120/2225 against the greenback from Thursday's close of 4.2135/2210
SPI Asset Management managing partner Stephen Innes said while better-than-expected United States (US) data and rising Treasury yields have weighed on most major currencies, the ringgit is drawing strength from positive developments closer to home.
'There is growing confidence that Malaysia could soon secure a trade deal with the US, potentially modelled off the 15 per cent tariff truce the US struck with Japan.
'That alone has markets pricing in a more favourable export outlook, particularly for Malaysia's high-value sectors,' Innes told Bernama.
On Thursday, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is still on track to secure a trade deal with the US by the Aug 1 deadline at the lowest possible tariff.
Innes said investor sentiment was also buoyed by anticipation surrounding next week's high-level talks in Stockholm, between the US Secretary of Treasury Scott Bessent and senior Chinese officials.
He noted that the markets see this as a potential catalyst for de-escalation in broader US-China tensions, which historically boosts risk appetite across Asia, including for the ringgit.
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