The ringgit opened stronger against the US dollar on Wednesday, supported by continued weakness in the dollar as fiscal uncertainty and tariff risks in the United States weighed on sentiment.
At 10am, the ringgit was at 4.2100, down 0.33% against the US dollar from its close of 4.1995 at Tuesday’s close.
Meanwhile, the US Dollar Index (DXY) extended its decline, falling to 96.819.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the dollar’s softness reflected ongoing concerns over US fiscal policy, including tariff measures and planned government spending cuts.
He said tax cuts and potential cuts in social spending could weigh on US growth prospects.
At the open, the ringgit was higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.9186/9324 from 2.9351/9389, strengthened against the British pound to 5.7555/7823 from 5.7797/7866, and appreciated against the euro to 4.9423/9654 from 4.9566/9625.
The local note also appreciated against most ASEAN currencies.
It was marginally higher against the Indonesian rupiah at 258.4/259.7 from 258.9/259.4 and rose against the Philippine peso to 7.43/7.47 from 7.45/7.46.
It rose against the Singapore dollar to 3.2899/3057 from 3.3015/3059 and strengthened against the Thai baht to 12.8930/9630 from 12.9363/9585
