Latest news with #AfzanizamRashid
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
Ringgit gains after US court pauses block on Trump's tariffs
KUALA LUMPUR : The ringgit opened stronger against the US dollar today, boosted by improved investor confidence in emerging market currencies after a US court temporarily halted a decision to block most Trump-era import tariffs, an analyst said. At 8am, the local note surged to 4.2180/4.2485 versus the greenback from Thursday's close of 4.2390/4.2475. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) fell below the 100-point mark to 99.278 points after the US court of appeals for the federal circuit granted a reprieve from a US court of international trade ruling that would have blocked most Trump-era import tariffs on Wednesday (US time). Additionally, he said US economic data look weaker with Initial Jobless Claims rising more than expected to 240,000 last week against consensus estimates of 229,000 while the Continuous Jobless Claims accelerated to 1.91 million for the week ending May 17 from 1.89 million in the prior week. 'Apart from that, the second estimate for the first quarter of 2025 US gross domestic product (GDP) contracted 0.2% quarter-on-quarter seasonally adjusted annualised rate (SAAR), slightly better than the first estimate of -0.3% but lower than the 2.4% expansion in the previous quarter. 'It appears that the US dollar weakening trend is likely to continue today, benefiting the ringgit,' he added. Afzanizam said traders and investors will be looking at Personal Consumption Expenditure (PCE) inflation data. Consensus is pencilling the headline PCE and Core PCE at a moderate pace of 2.2% and 2.5% in April against 2.3% and 2.6% in the prior month. Therefore, the ringgit is expected to trend higher today, possibly around RM4.21 and RM4.22, owing to a weaker US dollar outlook, he added. At the opening, the ringgit traded mostly higher against a basket of major currencies. It is appreciated against the British pound to 5.6943/5.7355 from 5.7091/5.7205 from Thursday's close and gained vis-à-vis the euro to 4.7992/4.8339 from 4.7803/4.7899 previously. However, the local note declined against the Japanese yen to 2.9349/2.9563 from yesterday's close of 2.9188/2.9249. The local note was traded mostly higher against its Asean peers. It improved against the Singapore dollar to 3.2789/3.3031 from 3.2853/3.2921 on Thursday's close and inched up versus the Indonesian rupiah to 258.6/260.6 from 259.9/260.5 previously. The ringgit advanced vis-à-vis the Philippine peso at 7.56/7.62 from 7.60/7.62 at yesterday's close, but slid against the Thai baht to 12.9565/13.0590 from 12.9321/12.9647 previously.
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Ringgit slips against US dollar as Fed seen delaying rate cuts
KUALA LUMPUR : The ringgit opened lower against the US dollar on Thursday, as expectations dimmed for a near-term rate cut by the US Federal Reserve, an analyst said. At 8am, the local note declined to 4.2300/4.2650 against the greenback from Wednesday's close of 4.2215/4.2275. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) rose 0.36% to 99.875, after minutes from the Federal Open Market Committee (FOMC) signalling that rising stagflation risks could delay monetary easing this year. 'It appears the Fed is concerned about the risks posed by persistently high inflation, despite weak job growth prospects. 'The impression is that the Fed may be reluctant to cut the federal funds rate to support growth, presenting a policy dilemma, as it must also ensure that inflation remains under control,' he added. Citing the recent FOMC minutes, Afzanizam said the risk of a US recession has increased, as uncertainties over trade policies and export restrictions could impede economic activity. Hence, at the upcoming FOMC meeting in June, the Fed staff is expected to release a revised set of macroeconomic forecasts, with a downward adjustment from the March projections appearing likely, he added. At the opening, however, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.8998/2.9240 from Wednesday's close of 2.9271/2.9315, gained vis-à-vis the euro to 4.7494/4.7887 from 4.7838/4.7906, and appreciated against the British pound to 5.6779/5.7249 from 5.7028/5.7109. The local note, meanwhile, traded mixed against its Asean peers. It strengthened against the Singapore dollar to 3.2674/3.2950 from 3.2776/3.2825 on Wednesday, and advanced against the Thai baht to 12.8771/12.9947 from 12.9355/12.9614. However, it edged lower versus the Indonesian rupiah to 259.5/261.8 from 259.0/259.5, and declined vis-à-vis the Philippine peso to 7.62/7.69 from 7.60/7.62.
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Ringgit rebounds on improved risk appetite
KUALA LUMPUR : The ringgit rebounded to close higher against the US dollar today, supported by improved risk appetite for the local currency despite prevailing global uncertainties. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the greenback is looking weaker at the moment despite stronger 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 3% of gross domestic product (GDP) and maintaining the statutory debt limit at 65% of GDP over the medium-term,' he told Bernama. Afzanizam noted that US economic data looked favourable last night, with the US Conference Board's 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 US president Donald Trump's administration is receptive and willing to negotiate for better terms,' he added. At 6pm, the local currency rose to 4.2215/4.2275 versus the US dollar from yesterday's close of 4.2345/4.2430. At the close, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9271/2.9315 from yesterday's close of 2.9425/2.9486, gained vis-à-vis the euro to 4.7838/4.7906 from 4.8053/4.8150 yesterday and appreciated against the British pound to 5.7028/5.7109 from 5.7352/5.7467 previously. The local currency also traded higher against its Asean peers. It strengthened against the Singapore dollar to 3.2776/3.2825 from 3.2894/3.2963 yesterday and inched up against the Thai baht to 12.9355/12.9614 from 12.9365/12.9676 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 259/259.5 from 259.9/260.6 previously.
Free Malaysia Today
7 days ago
- Business
- Free Malaysia Today
Ringgit edges down on improving US consumer confidence
KUALA LUMPUR : The ringgit marginally depreciated against the US dollar on Wednesday, weighed down by a firmer greenback following an improvement in US consumer confidence and persistent concerns over global tariff developments. At 8.05am, the ringgit slid to 4.2350/4.2500 against the US dollar compared with Tuesday's close of 4.2345/4.2430. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) rose 0.59% to 99.521 points last night, reflecting a modest recovery despite remaining below the 100-point level. 'The uptick tracked the latest US Conference Board Consumer Confidence Index, which climbed to 98 points – largely driven by stronger stock market performance since early April and easing gasoline prices,' he noted. Analysts remain cautious, nevertheless, he said. At yesterday's close, the local note slipped 0.47% to RM4.2388 versus the US dollar from RM4.2190 previously, because some traders opted to lock in profits. 'Despite the rebound in confidence, the US economy still faces downside risks, particularly from inflationary pressure linked to tariff policies. 'Given the firmer dollar and lingering external uncertainties, the ringgit is expected to remain under pressure, trading within a narrower band of RM4.22 to RM4.23 today,' he added. The ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9391/2.9500 from 2.9425/2.9486, improved vis-à-vis the euro to 4.8012/4.8182 from 4.8053/4.8150, and appreciated against the British pound to 5.7228/5.7430 from 5.7352/5.7467 previously. The local note traded mixed against its Asean peers. It rose against the Singapore dollar to 3.2870/3.2989 from 3.2894/3.2963, but fell against the Thai baht to 12.9471/13.0025 from 12.9365/12.9676 at yesterday's close. The ringgit was flat against the Philippine peso at 7.62/7.65 from 7.62/7.64 previously. It was also flat against the Indonesian rupiah at 259.9/261.0 from 259.9/260.6.
Free Malaysia Today
27-05-2025
- Business
- Free Malaysia Today
Ringgit maintains strength against US dollar amid tariff shock
KUALA LUMPUR : The ringgit continued to strengthen against the US dollar at opening today, driven by tariff shocks that are expected to negatively impact the US economy, said an analyst. At 8.04am, the local note rose to 4.2100/4.2410 versus the greenback from Friday's close of 4.2285/4.2345. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the recent tax cut legislation passed by the US House of Representatives is expected to widen the fiscal deficit and increase government debt levels. 'The sovereign rating downgrade by Moody's Ratings, which occurred prior to the legislation's approval, has pushed US Treasury yields higher, with 30-year bonds exceeding the 5.0% mark, making borrowing more expensive. 'As a result, markets are now at a critical crossroads, as the US dollar, traditionally seen as a safe-haven currency, is having that status revisited,' he noted. As such, the ringgit is expected to remain positive in light of the weak US dollar, he added. Afzanizam said the current US$/RM support and resistance levels are at 4.0942 and 4.2624, respectively. 'Assuming the ringgit strengthens by a further 0.5% this week, the US$/RM pair could settle around 4.2103, within a range of 4.22 to 4.23,' he said. At the opening, the ringgit traded higher against a basket of major currencies and Asean currencies. It appreciated against the British pound to 5.7016/5.7436 from 5.7072/5.7153 at Friday's close, gained vis-à-vis the euro to 4.7918/4.8271 from 4.7985/4.8053, and rose against the Japanese yen to 2.9490/2.9709 from 2.9502/2.9546. Against regional peers, the ringgit improved against the Singapore dollar to 3.2775/3.3022 from 3.2891/3.2940 last Friday, and strengthened against the Thai baht to 12.9173/13.0252 from 12.9744/13.0012 previously. The local note also rose vis-à-vis the Philippine peso to 7.61/7.68 from 7.65/7.66, and increased against the Indonesian rupiah to 259.6/261.5 from 260.7/261.1 previously.
