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Free Malaysia Today
an hour ago
- Business
- Free Malaysia Today
Ringgit opens higher on easing trade tensions
KUALA LUMPUR : The ringgit opened higher on Tuesday against the US dollar and other major and regional currencies, supported by easing global trade tensions that lifted investor sentiment, an analyst said. At 8.01am, the local note rose to 4.2140/4.2460 against the greenback from Monday's close of 4.2275/4.2345. However, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) had strengthened, buoyed by optimism ahead of upcoming US-China trade talks. The DXY gained 1.03% to 98.653 points, as officials from both countries were in discussions in Sweden on a possible trade truce, he noted. 'At the same time, the two-day Federal Open Market Committee (FOMC) meeting, which begins today, will be in the spotlight, with consensus expecting no change to the Fed Funds Rate. 'In addition, the US labour market will be closely watched, with July's Nonfarm Payrolls (NFP) report due on Friday. The market expects a softer print of 108,000, down from 147,000 in June,' he said. Afzanizam added that the ringgit had weakened 0.21% against the US dollar to RM4.2310 on Monday, amid ongoing trade negotiations between Malaysia and the US. Malaysia is actively engaging the US to avert the impending 25% tariffs set to take effect on Aug 1, seeking a rate below 20%. Meanwhile, the extended US-China negotiations could signal a prolonged truce, suggesting the administration of US President Donald Trump remains sensitive to the tariffs' potential impact on the domestic economy. 'However, tariff shocks are likely to increase downside risks to global growth in the second half of 2025 and beyond, as higher costs of doing business in the US could dampen aggregate demand. 'The current term of the Fed chair ends in May next year, and it appears likely that Jerome Powell's successor will be more aligned with the US President's preference for lower interest rates as a policy stance,' he added. Afzanizam expects the ringgit to trade in a narrow range, likely between RM4.23 and RM4.24 today. At the opening, the ringgit traded higher against most major currencies. It rose against the Japanese yen to 2.8383/2.8600 from 2.8497/2.8546 at Monday's close, appreciated versus the British pound to 5.6286/5.6714 from 5.6720/5.6814, and strengthened against the euro to 4.8861/4.9232 from 4.9331/4.9412 previously. The local note was also firmer against regional peers. It improved against the Indonesian rupiah to 257.4/259.6 from 258.3/258.9, gained versus the Singapore dollar to 3.2750/3.3004 from 3.2917/3.2974, strengthened against the Thai baht to 12.9626/13.0702 from 13.0511/13.0787, and inched up against the Philippine peso to 7.37/7.43 from 7.39/7.41 previously.
Malay Mail
5 hours ago
- Business
- Malay Mail
Ringgit climbs as easing trade tensions lift investor sentiment
KUALA LUMPUR, July 29 — The ringgit opened higher on Tuesday against the US dollar and other major and regional currencies, supported by easing global trade tensions that lifted investor sentiment, an analyst said. At 8.01am, the local note rose to 4.2140/2460 against the greenback from Monday's close of 4.2275/2345. However, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) had strengthened, buoyed by optimism ahead of upcoming US-China trade talks. The DXY gained 1.03 per cent to 98.653 points, as officials from both countries were in discussions in Sweden on a possible trade truce, he told Bernama. 'At the same time, the two-day Federal Open Market Committee (FOMC) meeting, which begins today, will be in the spotlight, with consensus expecting no change to the Fed Funds Rate. 'In addition, the US labour market will be closely watched, with July's Nonfarm Payrolls (NFP) report due on Friday. The market expects a softer print of 108,000, down from 147,000 in June,' he said. Mohd Afzanizam noted that the ringgit had weakened 0.21 per cent against the US dollar to RM4.2310 on Monday, amid ongoing trade negotiations between Malaysia and the United States. Malaysia is actively engaging the US to avert the impending 25 per cent tariffs set to take effect on Aug 1, seeking a rate below 20 per cent. Meanwhile, the extended US-China negotiations could signal a prolonged truce, suggesting the administration of US President Donald Trump remains sensitive to the tariffs' potential impact on the domestic economy. 'However, tariff shocks are likely to increase downside risks to global growth in the second half of 2025 and beyond, as higher costs of doing business in the US could dampen aggregate demand. 'The current term of the Fed chair ends in May next year, and it appears likely that Jerome Powell's successor will be more aligned with the US President's preference for lower interest rates as a policy stance,' he added. Mohd Afzanizam expects the ringgit to trade in a narrow range, likely between RM4.23 and RM4.24 today. At the opening, the ringgit traded higher against most major currencies. It rose against the Japanese yen to 2.8383/8600 from 2.8497/8546 at Monday's close, appreciated versus the British pound to 5.6286/6714 from 5.6720/6814, and strengthened against the euro to 4.8861/9232 from 4.9331/9412 previously. The local note was also firmer against regional peers. It improved against the Indonesian rupiah to 257.4/259.6 from 258.3/258.9, gained versus the Singapore dollar to 3.2750/3004 from 3.2917/2974, strengthened against the Thai baht to 12.9626/13.0702 from 13.0511/0787, and inched up against the Philippine peso to 7.37/7.43 from 7.39/7.41 previously. — Bernama
Free Malaysia Today
16 hours ago
- Business
- Free Malaysia Today
Ringgit ends lower as BNM cuts GDP projection
KUALA LUMPUR : The ringgit ended weaker against the US dollar today, as traders' sentiment was affected by Bank Negara Malaysia's (BNM) gross domestic product (GDP) revision for the year. The central bank has revised Malaysia's 2025 GDP growth to 4%-4.8% from 4.5%-5.5% previously, and similarly, the inflation rate for 2025 is projected to range between 1.5% and 2.3% from the previous forecast of 2%-3.5%. Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said BNM is being pragmatic by adjusting the growth forecast lower, taking into account external risks. At the same time, a lower inflation forecast suggests that the impact from the anticipated RON95 subsidy rationalisation is likely to be manageable. 'As such, we foresee this will be positive for the ringgit in the mid to long term as fiscal consolidation will continue to take place, resulting in more fiscal space which can be redirected into targeted assistance as well as higher development expenditure (DE). 'This Thursday, the government will announce the 13th Malaysia Plan, and we foresee a higher allocation for DE in the next five years to drive the Malaysian economy into high-income status,' he said to Bernama. Meanwhile, he noted that the US Dollar Index (DXY) has strengthened, buoyed by optimism over the upcoming US-China trade talks. 'The DXY was up 0.5% to 98.13 points as news over US tariffs is seen to be dollar-positive,' he said. US and Chinese officials are set to meet in Sweden today, with both parties expected to extend the trade truce. At 6pm, the local note slid to 4.2275/4.2345 versus the greenback from last Friday's close of 4.2195/4.2245. At the close, the ringgit ended higher against most major currencies. It rose against the Japanese yen to 2.8497/2.8546 from 2.8529/2.8565 at the close last Friday, appreciated versus the British pound to 5.6720/5.6814 from 5.6786/5.6853 last week, and edged higher against the euro to 4.9331/4.9412 from 4.9507/4.9566 previously. However, the ringgit was mixed against regional peers. It was almost flat against the Indonesian rupiah at 258.3/258.9 from 258.5/258.9 last Friday, gained against the Singapore dollar to 3.2917/3.2974 from 3.2937/3.2978 last week, weakened versus the Thai baht to 13.0511/13.0787 from 13.0268/13.0478, and fell against the Philippine peso to 7.39/7.41 from 7.38/7.40 previously.
Malay Mail
18 hours ago
- Business
- Malay Mail
Ringgit ends lower vs greenback following Bank Negara's GDP forecast revision
KUALA LUMPUR, July 28 —The ringgit ended easier against the US dollar today, as traders' sentiment was affected by Bank Negara Malaysia's (BNM) gross domestic product (GDP) revision for the year. At 6pm, the local note slid to 4.2275/2345 versus the greenback from last Friday's close of 4.2195/2245. The central bank has revised Malaysia's 2025 GDP growth to 4.0-4.8 per cent from 4.5-5.5 per cent previously, and similarly, the inflation rate for 2025 is projected to range between 1.5 per cent and 2.3 per cent from the previous forecast of 2.0-3.5 per cent. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the BNM is being pragmatic by adjusting the growth forecast lower, taking into account external risks. At the same time, a lower inflation forecast suggests that the impact from the anticipated RON95 subsidies rationalisation is likely to be manageable. 'As such, we foresee this will be positive for the ringgit in the mid- to long-term as fiscal consolidation will continue to take place, resulting in more fiscal space which can be redirected into targeted assistance as well as higher development expenditure (DE). 'This Thursday, the government will announce the 13th Malaysia Plan, and we foresee a higher allocation for DE in the next five years to drive the Malaysian economy into high-income status,' he said to Bernama. Meanwhile, he noted that the US Dollar Index (DXY) has strengthened, buoyed by optimism over the upcoming US-China trade talks. 'The US Dollar Index (DXY) was up 0.5 per cent to 98.13 points as news over US tariffs is seen to be dollar-positive,' he said. US and Chinese officials are set to meet in Sweden today, with both parties expected to extend the trade truce. At the close, the ringgit ended higher against most major currencies. It rose against the Japanese yen to 2.8497/8546 from 2.8529/8565 at the close last Friday, appreciated versus the British pound to 5.6720/6814 from 5.6786/6853 last week, and edged higher against the euro to 4.9331/9412 from 4.9507/9566 previously. However, the ringgit was mixed against regional peers. It was almost flat against the Indonesian rupiah at 258.3/258.9 from 258.5/258.9 last Friday, gained against the Singapore dollar to 3.2917/2974 from 3.2937/2978 last week, weakened versus the Thai baht to 13.0511/0787 from 13.0268/0478 and fell against the Philippine peso to 7.39/7.41 from 7.38/7.40 previously. — Bernama
Malay Mail
a day ago
- Business
- Malay Mail
Ringgit strengthens as traders await US-China trade signals, Fed call
KUALA LUMPUR, July 28 — The ringgit opened marginally higher against the US dollar in early trade on Monday amid cautious sentiment, as traders awaited clarity on a possible extension of the trade truce between the United States (US) and China, said an analyst. At 8am, the local note stood at 4.2110/2310 versus the greenback, compared with Friday's close of 4.2195/2245. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that earlier, the US and the European Union (EU) had agreed to a 15 per cent tariff on most EU imports, while most US imports would face zero tariff under the deal. He said markets are also closely watching the upcoming US Federal Open Market Committee (FOMC) meeting scheduled for July 29 and 30, with consensus expecting no change to the Federal Funds Rate, currently at 4.25 per cent to 4.50 per cent. 'Based on recent developments, most countries appear accommodative in offering favourable terms to the US. It remains to be seen whether this will effectively narrow the trade balance in the near term. 'However, the cost of doing business in the US is likely to rise, and it also appears the US may be relying on a weaker dollar to boost export competitiveness. 'Against this backdrop, we expect the ringgit to remain within a narrow range of RM4.22 to RM4.23 versus the US dollar,' Mohd Afzanizam told Bernama. At opening here, the ringgit traded mostly higher against a basket of major currencies. It rose against the Japanese yen to 2.8499/2863 from 2.8529/8565 at Friday's close, and strengthened versus the British pound to 5.6600/6869 from 5.6786/6853. However, it eased slightly against the euro to 4.9521/9757 from 4.9507/9566. Against regional peers, the ringgit was also firmer. It advanced against the Indonesian rupiah to 258.0/259.3 from 258.5/258.9 on Friday, and gained versus the Singapore dollar at 3.2878/3039 from 3.2937/2978. The local note also strengthened against the Thai baht to 12.9809/13.0546 from 13.0268/0478, and edged up against the Philippine peso to 7.37/7.41 from 7.38/7.40 previously. — Bernama
