Ringgit opens slightly higher despite rising US rate expectations

The ringgit opened slightly higher against the US dollar on Tuesday, although the greenback remained supported by expectations of higher US interest rates.

At 8am, the ringgit rose to 4.0835/4.0895 against the US dollar from Monday’s close of 4.0845/4.0890.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US dollar index (DXY) rose 0.23% to 102.167 points, reflecting the stronger greenback.

“As a result, the ringgit was likely to remain within a narrow trading range,” he noted.

He added that the US dollar had also strengthened as demand for the currency increased, with some investors seeking safer assets amid global uncertainty.

The ringgit traded higher against most major currencies at the opening.

It rose against the Japanese yen to 2.5847/2.5886 from 2.5858/2.5886 at Monday’s close and strengthened against the British pound to 5.3976/5.4055 from 5.4022/5.4081.

However, it weakened against the euro to 4.5805/4.5872 from 4.5775/4.5825.

Against regional currencies, the ringgit traded mixed.

It strengthened against the Thai baht to 12.1151/12.1390 from 12.1234/12.1411 but weakened slightly against the Singapore dollar to 3.1907/3.1957 from 3.1905/3.1943 at Monday’s close.

The local note was unchanged against the Philippine peso at 6.52/6.53 and the Indonesian rupiah at 227.9/228.3.