Latest news with #ringgit
Malay Mail
4 hours ago
- Business
- Malay Mail
Ringgit firms as Fed rate cut bets weigh on dollar
KUALA LUMPUR, July 18 — The ringgit opened firmer against the US dollar on Friday as traders shied away from the greenback amid growing anticipation of an interest rate cut by the US Federal Reserve (Fed), said an analyst. At 8 am, the ringgit rose to 4.2340/2580 against the greenback, compared to Thursday's close of 4.2465/2510. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Fed Governor Christopher Waller suggested the central bank cut interest rates this month, and that it should not wait for the labour market to deteriorate before doing so. Mohd Afzanizam added that investors remain cautious amid concerns whether countries can secure concessions before the new US tariffs take effect on Aug 1. 'Issues surrounding the US tariff remain high on the agenda,' he told Bernama. On the domestic front, he said all eyes are on the advance estimate of Malaysia's second quarter 2025 gross domestic product (GDP) scheduled to be announced today. 'We forecast the economy will grow by 4.5 per cent, as front-loading activities are expected to support Malaysia's external demand, while a resilient labour market and ongoing investment activities will continue to drive domestic demand,' he added. On that note, he said the ringgit is likely to trade within the RM4.24 to RM4.25 range against the US dollar today. At the opening, the ringgit was traded higher against a basket of major currencies. It rose against the Japanese yen to 2.8523/8687 from 2.8548/8580, strengthened against the British pound to 5.6867/7189 from 5.6886/6946 and advanced versus the euro to 4.9178/9457 from 4.9217/9269 at yesterday's close. The local note also trended higher against most Asean currencies. It rose vis-a-vis the Singapore dollar to 3.2939/3131 from 3.3013/3051, gained against the Thai baht to 13.0385/1201 from 13.0521/0720, appreciated against the Indonesian rupiah to 259.1/260.6 from 259.8/260.2 and edged up versus the Philippine peso to 7.39/7.44 from 7.41/7.43 previously. — Bernama
Malay Mail
18 hours ago
- Business
- Malay Mail
Ringgit dips amid ongoing concerns over US tariffs and Fed leadership
KUALA LUMPUR, July 17 — The ringgit slipped further against the greenback on Thursday on continued uncertainty about US tariffs. At 6pm, the local note dipped to 4.2465/2510 from 4.2400/2490 on Wednesday's close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants remained anxious about how US tariffs will impact the global economy. 'US President Donald Trump has indicated that 150-plus countries will be notified about their respective tariff rates, which could be in the region of 10 to 15 per cent. At the same time, Trump also denied news on the possible termination of the current US Federal Reserve (Fed) chairman Jerome Powell. Market participants remain anxious about how the US tariffs will (play out),' he told Bernama. SPI Asset Management managing partner Stephen Innes said the markets were earlier jolted on the news regarding the fate of the Fed chairman, stirring concerns of a direct assault on the US central bank's independence. 'That sparked a knee-jerk selloff of the US dollar and a brief bid into gold, but the move quickly reversed after Trump's (denial of a plan to fire Powell),' he added. On the ringgit, Innes said that while regional currencies broadly struggled today, the sentiment on the ringgit soured further due to Malaysia's current trade standing with the United States. 'Unlike Indonesia, which recently inked a deal to reduce tariffs and deepen bilateral trade ties, Malaysia has made little visible progress on that front. That comparative stagnation is starting to bite, especially with global investors scrutinising who's in Washington's good books heading into a volatile period with the Aug 1 tariff deadline looming,' he added. At the close, the ringgit traded higher against a basket of major currencies. It was up versus the euro at 4.9217/9269 from 4.9248/9352 at yesterday's close but retreated against the British pound to 5.6886/6946 from 5.6786/6907 and declined against the Japanese yen to 2.8548/8580 from 2.8508/8569. The local note also trended mostly higher against ASEAN currencies. It inched up against the Indonesian rupiah to 259.8/260.2 from 260.3/260.9 and strengthened versus the Philippine peso to 7.41/7.43 from 7.43/7.45. The ringgit fell against the Thai baht to 13.0521/0720 from 13.0301/0630 and traded down vis-à-vis the Singapore dollar to 3.3013/3051 from 3.2999/3071.— Bernama
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Ringgit slips against dollar as US rate cut hopes fade
KUALA LUMPUR : The ringgit opened lower against the US dollar today as the greenback strengthened on waning hopes of an interest rate cut this month by the US. At 8am, the ringgit dipped to 4.2480/4.2575 against the greenback, compared to Tuesday's close of 4.2395/4.2440. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US June Consumer Price Index (CPI) report released on Tuesday suggests that the inflation rate there is climbing, dashing hopes for an interest rate cut at the upcoming US Federal Open Market Committee (FOMC) meeting at the end of July. 'The US CPI came in at 2.7% higher year-on-year in June from 2.4% in the preceding month and similarly, the core CPI rose 2.9% during June after sustaining 2.8% increases for three consecutive months,' he added. Afzanizam also noted that China's second quarter gross domestic product (GDP) moderated to 5.2% from 5.4% in the first quarter, resulting in the Chinese yuan weakening against the greenback by 0.15% to 7.1825 yuan. 'In light of the latest US CPI and China's GDP, the ringgit could experience some knee jerk reaction with the US dollar-ringgit pair at around RM4.24-RM4.26 today,' he added. At the open, the ringgit was traded higher against a basket of major currencies. It improved against the Japanese yen to 2.8552/2.8618 from 2.8702/2.8734 yesterday, strengthened against the British pound to 5.6893/5.7021 from 5.7047/5.7107, and gained versus the euro to 4.9311/4.9421 from 4.9539/4.9591. The local note trended mixed against Asean currencies. The ringgit trended firmer vis-à-vis the Singapore dollar at 3.3066/3.3145 from 3.3095/3.3133, and edged up against the Thai baht to 13.0355/13.0783 from 13.0784/13.0988. But it slipped against the Indonesian rupiah to 261.1/261.8 from 260.6/261.0 and dropped against the Philippine peso at 7.49/7.51 from 7.47/7.49 from Tuesday's close.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Ringgit rebounds on softer US stance towards China
KUALA LUMPUR : The ringgit rebounded this morning, opening higher against the US dollar amid reports of a softer stance by US President Donald Trump towards China. At 8am, the ringgit rose to 4.2335/4.2550 against the greenback, compared to Wednesday's close of 4.2400/4.2490. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) fell 0.23% to 98.392 points as Trump reportedly adopted a less hawkish stance towards China, despite the ballooning trade deficit with the world's second-largest economy. 'At the same time, news is circulating on the possible termination of Federal Reserve chairman Jerome Powell by President Trump, which also seems to fuel positive sentiment in the market,' he added. As such, Afzanizam said the ringgit could gain some traction today after weakening slightly by 0.07% to 4.2445 yesterday. At the opening, the ringgit was traded lower against a basket of major currencies, except for the British pound. It strengthened against the British pound to 5.6767/5.7055 from 5.6786/5.6907 at yesterday's close. However, it slipped against the Japanese yen to 2.8603/2.8750 from 2.8508/2.8569, and fell versus the euro to 4.9257/4.9507 from 4.9248/4.9352 previously. The local note was mostly higher against most Asean currencies. It rose vis-a-vis the Singapore dollar to 3.2987/3.3159 from 3.2999/3.3071, appreciated against the Indonesian rupiah to 259.9/261.3 from 260.3/260.9 and edged up versus the Philippine peso to 7.41/7.46 from 7.43/7.45. But it fell against the Thai baht to 13.0322/13.1076 from 13.0301/13.0630 at Wednesday's close.
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Ringgit closes slightly lower, stays defensive despite Fed concerns
KUALA LUMPUR : The ringgit slipped 0.01% against the US dollar at the close, as the local note continued trading on the defensive today, which offered some technical comfort for the ringgit. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the US Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said the dollar's recent bid reflected a subtle but growing shift in sentiment. 'Sticky core inflation, fuelled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. 'This does not necessarily break the broader RM4.20-RM4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit weakened against the US dollar in the early morning session to RM4.2575 in response to the US consumer price index (CPI), which continued to increase in June to 2.7% from 2.4% previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Afzanizam said. At 6pm, the local note traded at 4.2400/4.2490 from 4.2395/4.2440 at yesterday's close. At the close, the ringgit traded higher against a basket of major currencies. It strengthened against the British pound to 5.6786/5.6907 from yesterday's close of 5.7047/5.7107, improved against the Japanese yen to 2.8508/2.8569 compared with 2.8702/2.8734, and was up versus the euro at 4.9248/4.9352 from 4.9539/4.9591. The local note also traded higher against Asean currencies. It traded higher vis-a-vis the Singapore dollar at 3.2999/3.3071 from 3.3095/3.3133 yesterday, inched up against the Indonesian rupiah to 260.3/260.9 from 260.6/261 and strengthened versus the Philippine peso to 7.43/7.45 from 7.47/7.49. It also gained against the Thai baht to 13.0301/13.0630 from 13.0784/13.0988.
