Ringgit rebounds as US dollar weakens despite progress in trade talks
KUALA LUMPUR : The ringgit strengthened against the US dollar as the greenback softened, with the US Dollar Index (DXY) slipping 0.1% to 99.0 points, despite renewed optimism over a potential breakthrough in the US-China trade talks.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that the local currency continues to trade range-bound, moving between 4.2322 and 4.2418.
'The renewed optimism over the trade talks failed to sustain due to the lack of information, giving rise to uncertainties yet again,' he told Bernama.
Meanwhile, Afzanizam noted that Malaysia's industrial production index (IPI) grew moderately at 2.7% in April, while growth in the export-oriented industries in the manufacturing sector continues to accelerate to 6.4%, especially the electrical and electronics sector.
Front-loading activities among the trading partners, especially from the US, could explain such high growth in the manufacturing activities.
'All in all, traders and investors remain cautious on the tariff front and how it may impact the economy,' he added.
At 6pm, the local currency stood at 4.2345/4.2370 against the dollar, slightly firmer than yesterday's close of 4.2360/4.2420.
At the close, the ringgit traded mostly lower against a basket of major currencies.
It rose against the Japanese yen to 2.9187/2.9207 from yesterday's 2.9270/2.9314 but weakened versus the British pound to 5.7166/5.7200 from 5.7152/5.7233 yesterday and fell vis-à-vis the euro to 4.8426/4.8454 from 4.8354/4.8422 previously.
At the same time, the local currency traded mixed against its Asean peers, rising versus the Singapore dollar to 3.2925/3.2947 from 3.2932/3.2981 at yesterday's close and increased vis-à-vis the Philippine peso to 7.57/7.59 from 7.58/7.60 yesterday.
However, the ringgit declined against the Thai baht to 12.9729/12.9870 from 12.9712/12.9955 yesterday and eased against the Indonesian rupiah to 260.4/260.6 from 260.2/260.7 previously.
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