Ringgit Rallies On Hopes Of Trade Resolution, Stronger Sentiment
The ringgit extended its upward momentum against the US dollar on Tuesday, opening at 4.1835/2035, firmer than Monday's close of 4.1990/2035, buoyed by positive sentiment surrounding the local unit.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the currency's performance was likely driven by speculation that trade agreements may be reached, as US tariff measures could weigh heavily on US economic growth.
'On that note, we shall expect the ringgit to remain strong against the US dollar today,' he told local media.
Afzanizam also noted that the US Dollar Index (DXY) continued to hover below the 100-point level, standing at 99.831, despite the US Institute for Supply Management (ISM) services index for April coming in better than expected at 51.6 points (Consensus: 50.2 points).
Adding to the ringgit's strength was market confidence stemming from the Special Parliamentary Session on US tariffs held on May 5. During the session, the government expressed its commitment to implement the necessary measures to cushion the impact of the tariff shocks introduced by US President Donald Trump.
The ringgit was stronger across major currencies. It rose against the Japanese yen to 2.9111/9252 from 2.9192/9225, strengthened versus the euro to 4.7320/7546 from 4.7629/7680, and appreciated against the British pound to 5.5595/5860 from 5.5868/5928.
The local note also climbed against ASEAN currencies. It advanced versus the Singapore dollar to 3.2410/2573 from 3.2644/2682, improved vis-à-vis the Thai baht to 12.6942/7692 from 12.7497/7747, and gained against the Philippine peso to 7.50/7.54 from 7.53/7.54. It also appreciated versus the Indonesian rupiah to 254.1/255.5 from 255.1/255.5. Related
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