The ringgit opened stronger against the US dollar on Wednesday, supported by a weaker US dollar as investors reacted to a weaker US economic outlook amid concerns over new tariffs.
At 10am, the ringgit was at 4.2750, up 0.28% against the US dollar from its close of 4.2950 at the end of Tuesday’s trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the market was showing signs of caution due to ongoing tariff-related uncertainty which could put pressure on prices and overall economic growth in the US.
The US Dollar Index (DXY) was seen declining by 0.31% to 100.118 points while US equity prices fell as they entered overbought territory.
Mohd Afzanizam added that sentiment remained subdued, with the US dollar-ringgit exchange rate expected to trade in a range of 4.28 to 4.29.
At the opening, the ringgit was also mostly traded higher against a basket of major and regional currencies.
The local unit rose against the Japanese yen to 2.9651/9771 from 2.9727/9773, appreciated against the euro to 4.8306/8498 from 4.8340/8408, and strengthened against the British pound to 5.7326/7554 from 5.7428/7509.
It also rose against the Singapore dollar to 3.3058/3194 from 3.3153/3202, rose against the Indonesian rupiah to 260.6/261.8 from 261.6/262.1, and advanced higher against the Philippine peso to 7.69/7.73 from 7.72/7.73
However, it fell against the Thai baht to 13.0065/0721 from 12.9856/13.0116.
