THE ringgit opened almost flat against the dollar, as market sentiment remained fixated on the US President’s conflicting remarks about the Federal Reserve (Fed) chairman’s position.
At 8am, the local currency was marginally higher at 4.3825/4150 against the greenback, compared with Tuesday’s close of 4.3835/3905.
Bernama cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying the president’s comments had raised concerns over the Fed’s independence, suggesting possible political interference in its efforts to balance growth and inflation.
“Trump’s latest remarks stating he has no intention to dismiss Jerome Powell have led benchmark equity indices to rebound, while the US Dollar Index (DXY) is gradually inching towards the 98-point level,” he told Bernama.
Mohd Afzanizam added that the International Monetary Fund (IMF)’s latest revision to its US gross domestic product (GDP) growth forecast for 2025 had cast a sombre mood over markets.
The IMF cut its US GDP projection to 1.8 per cent from 2.7 per cent and indicated rising odds of a recession.
“On that note, the ringgit could be slightly weaker, in view of the rise in the DXY today,” he said.
Back home, the ringgit traded firmer against a basket of major currencies.
It rose against the Japanese yen to 3.0711/0941 from 3.1206/1260 at Tuesday’s close, firmed against the British pound to 5.8173/8605 from 5.8590/8683, and strengthened versus the euro to 4.9755/0123 from 5.0362/0442.
The local note also traded mixed to higher against ASEAN currencies.
It appreciated against the Singapore dollar to 3.3357/3610 from 3.3523/3579, was almost unchanged against the Philippine peso at 7.73/7.79 from 7.73/7.75, strengthened against the Thai baht to 13.0397/1508 from 13.1930/2212, and was flat against the Indonesian rupiah at 259.9/261.9 compared with 259.9/260.5. - April 23, 2025
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