THE ringgit opened stronger against the US dollar on Monday, touching the 4.39-level as uncertainty over US trade policy weighed on the greenback amid ongoing negotiations with Japan and the European Union.
At 8am, the local currency strengthened to 4.3955/4195 against the greenback from last Friday’s close of 4.4100/4175.
Bernama cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying uncertainty over trade policy appeared to have weakened the US dollar, which typically acts as a safe haven during turbulent times.
“This has led to an appreciation in emerging market currencies, including the ringgit,” he told Bernama.
He added that the US Dollar Index (DXY) continues to decline, standing at around 98.827 amid ongoing uncertainty over US tariffs.
“Additionally, President Trump’s remarks on his frustration with the US Federal Reserve’s (Fed) interest rate decisions, and how these might affect the Fed chairman’s tenure, may have contributed to policy uncertainty.”
“In light of the DXY’s decline, Dollar-Ringgit could see an appreciating trend against the greenback today,” Mohd Afzanizam said.
Meanwhile, the ringgit traded lower against a basket of major currencies.
It weakened against the Japanese yen to 3.1066/1240 from 3.0971/1028 at last Friday’s close, eased against the British pound to 5.8539/8859 from 5.8516/8616, and inched down against the euro to 5.0342/0617 from 5.0133/0218.
The local note performed mixed against ASEAN currencies.
The ringgit firmed against the Indonesian rupiah to 260.4/262.0, compared with 261.2/261.8 previously, and traded stronger against the Philippine peso at 7.74/7.79 versus 7.77/7.79.
However, it eased against the Thai baht to 13.1989/2805 from 13.1815/2154 at last Friday’s close and retreated against the Singapore dollar to 3.3625/3817 from 3.3562/3601 at yesterday’s close. - April 21, 2021
