KUALA LUMPUR — The ringgit appreciated further against the US dollar today amid fears of US tariff hikes and the expectation that the US Federal Reserve (Fed) would maintain interest rates later this year, said an analyst.
At 6 pm, the ringgit advanced to 4.4200/4260 against the greenback from Tuesday’s close of 4.4400/4495.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that while the fear over tariff hikes by US President Donald Trump’s administration and the subsequent retaliation by the affected countries remains, the latest print on US job openings, which fell in December, offers hope that the Fed would stick to its game plan to cut interest rates later in the year.
“Perhaps the prevailing ringgit level, which is quite attractive given its oversold condition from the technical standpoint, may have lured traders to acquire ringgit. Otherwise, we still foresee currency markets maintaining their cautious stance in the near term,” he added.
Meanwhile, the ringgit was traded lower against other major currencies.
It fell against the Japanese yen to 2.8930/8972 from 2.8581/8645, eased against the euro to 4.5990/6053 from 4.5905/6003, and slipped against the British pound to 5.5321/5396 from 5.5167/5285.
The local note was mixed against ASEAN currencies.
It was slightly lower against the Singapore dollar at 3.2746/2792 from 3.2741/2813 and declined against the Thai baht to 13.1602/1844 from 13.1241/1580.
It was little changed against the Indonesian rupiah at 271.2/271.8 from 271.5/272.2 and was flat against the Philippine peso at Tuesday’s close of 7.61/7.63. — February 5, 2025