KUALA LUMPUR – The ringgit traded slightly higher against the US dollar today amid uncertainty over the upcoming US presidential election on November 5, an analyst said.
At 8.05am, the local note stood at 4.3450/3615 against the greenback, compared with Wednesday’s close of 4.3490/3535.
Bank Muamalat Malaysia Bhd’s chief economist Mohd Afzanizam Abdul Rashid said the ringgit may stay weak in the near term, with markets waiting for clarity until Americans cast their votes.
“The race between the candidates, Kamala Harris and Donald Trump is neck-and-neck, leading to greater uncertainties – something financial markets tend to dislike. As a result, risk appetite has declined, increasing demand for safe-haven currencies such as the US dollar.
“Additionally, the interest rate outlook seems to favour the greenback, as the Federal Reserve (Fed) is unlikely to ease monetary policy soon,” he told Bernama today.
He also noted that concerns over trade protectionism and highly expansionary fiscal policies could affect inflation, potentially prompting the US Fed to reconsider its current monetary stance.
In early trading, the ringgit was higher against a basket of major currencies.
It edged up against the Japanese yen to 2.8464/8574 from 2.8484/8516 at yesterday’s close, rose against the euro to 4.6839/7017 from 4.6887/6935, and strengthened against the British pound to 5.6111/6324 from 5.6433/6491 yesterday.
The ringgit also traded mostly higher versus Asean currencies.
It was almost flat against the Philippine peso at 7.50/7.53 from 7.50/7.52 previously, rose against the Singapore dollar to 3.2847/2974 from 3.2932/2969, and gained against the Indonesian rupiah to 278.0/279.2 from 278.2/278.7. It also strengthened against the Thai baht to 12.8573/12.9138 from 12.8959/9149. – October 24, 2024