Ringgit Recovers Throughout the Week Amid Global Uncertainty

thecekodok


The ringgit opened slightly higher against the US dollar on Friday, trading in a broader range amid lingering uncertainty over global tariffs and weak economic data.


At 10.30am, the ringgit was at 4.3010, up 0.26% against the US dollar from its close of 4.3130 on Wednesday.


The local market was closed on Thursday in conjunction with the Labour Day public holiday.


Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Institute for Supply Management (ISM) manufacturing index fell to 48.7 points in April, down from 49.0 in the previous month, as businesses grappled with the impact of tariffs.


He added that ISM survey respondents suggested widespread concerns and confusion over tariff regulations, as this could significantly impact operating costs and supply chains.


However, it weighed on emerging market currencies. The US dollar index (DXY) is weak amid the uncertainty.


The ringgit is likely to remain in a tight range between RM4.31 and RM4.32, as profit-taking is likely to take place.


The local note is also trading higher against a basket of major currencies.


It rose against the Japanese yen to 2.9663/9799 from 3.0142/0182 at Wednesday's close, strengthened against the euro to 4.8711/8932 from 4.9009/9071, and strengthened against the British pound to 5.7296/7555 from 5.7626/7699.


However, the local currency was mixed against its Asean peers.


It rose against the Singapore dollar to 3.2892/3046 from 3.3027/3074, and rose against the Thai baht to 12.8529/9230 from 12.9066/9304.


Conversely, the ringgit was unchanged against the Philippine peso at 7.72/7.76 from 7.72/7.73, and depreciated against the Indonesian rupiah to 260.0/261.3 from 257.9/258.4

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