Ad Banner
Advertisement by Open Privilege
Malaysia

Ringgit holds steady amid global market uncertainties

Image Credits: UnsplashImage Credits: Unsplash
  • The ringgit opened flat against the US dollar amid a rebound in the US Dollar Index (DXY) and lingering uncertainty over US tariff policies.
  • Mixed global cues, including the IMF’s downward growth revision and central banks’ potential policy easing, are keeping the ringgit rangebound.
  • The currency strengthened against the yen and pound but weakened against the euro, while remaining stable against regional peers like the Singapore dollar and Thai baht.

[MALAYSIA] The ringgit opened largely unchanged against the US dollar on Monday, as the greenback regained footing following a four-week decline, with the US Dollar Index (DXY) climbing back above the 100-point threshold. As of 8.04 am, the local currency stood at 4.3700/3900 versus the greenback, slightly firmer than last Friday’s close of 4.3705/3770.

The DXY’s rebound reflects a shift in market sentiment amid conflicting signals from the US Federal Reserve. Policymakers are grappling with robust economic indicators even as inflation remains a concern. Investors are now turning their attention to upcoming US jobs and inflation data, which could steer the Fed’s policy direction and, by extension, influence global foreign exchange movements. A more hawkish Fed stance may strengthen the dollar further, placing pressure on emerging market currencies such as the ringgit.

Analysts noted a cautious tone in the market, attributed to persistent uncertainty over US trade policy. Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is likely to stay within a tight trading band amid ongoing tariff-related ambiguity.

"Additionally, the International Monetary Fund’s cautious outlook on global growth indicates the possibility of further monetary easing by central banks to buffer economic headwinds,” he told Bernama.

The IMF recently downgraded its global growth projections, citing persistent geopolitical risks and uneven recovery patterns across major economies. This has reinforced expectations for looser monetary policy, particularly in Asia, where export-driven economies like Malaysia may benefit from a softer currency. Nonetheless, the ringgit’s trajectory remains influenced by domestic considerations, including Bank Negara Malaysia’s policy moves and structural economic reforms.

Domestically, the ringgit was mostly stronger against a basket of major currencies. It advanced against the Japanese yen to 3.0408/0550 from 3.0431/0481 at Friday’s close and firmed against the British pound to 5.8104/8369 from 5.8128/8214. However, it slipped against the euro to 4.9608/9835 from 4.9596/9670 previously.

The euro’s relative strength reflects the European Central Bank’s commitment to elevated interest rates in its fight against inflation, despite signs of slowing growth in the eurozone. This policy divergence between the ECB and other global central banks, including the Fed, continues to support the euro, posing challenges for cross-currency performance against the ringgit.

In the region, the ringgit was broadly stable against key Asian currencies.

It was marginally lower against the Singapore dollar at 3.3224/3381 compared to 3.3228/3280 last Friday, and held steady against the Thai baht at 13.0195/0900 from 13.0195/0450. The ringgit was also largely unchanged against the Philippine peso at 7.77/7.81 versus 7.77/7.78, and against the Indonesian rupiah at 259.6/260.9 from 259.6/260.2.

Regional currency markets remain subdued as traders await key economic data out of China, Malaysia’s top trading partner. Weaker-than-expected manufacturing or trade figures from China could dampen sentiment toward Asian currencies, while stronger data could lend support to the ringgit and its regional counterparts.


Ad Banner
Advertisement by Open Privilege

Read More

Economy Asia
Image Credits: Unsplash
EconomyMay 9, 2025 at 5:30:00 PM

Indonesia shifts fuel imports from Singapore to US amid tariff negotiations

[WORLD] Indonesia is preparing to reroute a portion of its fuel imports from Singapore to the United States as part of broader negotiations...

In Trend Asia
Image Credits: Unsplash
In TrendMay 9, 2025 at 4:00:00 PM

Positive prospects in May 2025 for the Snake month

[WORLD] As May 2025 arrives, Chinese astrology places us in the month of the Snake, a time traditionally associated with wisdom, stealth, and...

In Trend Asia
Image Credits: Unsplash
In TrendMay 9, 2025 at 3:30:00 PM

All you need to know about ginger

[WORLD] From ancient medicine to modern kitchens, ginger (Zingiber officinale) has been cherished for its distinctive flavor and myriad health benefits. This article...

Economy Asia
Image Credits: Unsplash
EconomyMay 9, 2025 at 1:30:00 PM

Pope Leo XIV holds first Mass

[WORLD] Pope Leo XIV, formerly Cardinal Robert Francis Prevost, celebrated his inaugural Mass as the 267th leader of the Roman Catholic Church today,...

Tech Asia
Image Credits: Unsplash
TechMay 9, 2025 at 1:00:00 PM

China’s U.S. exports tumble as tariffs escalate

[WORLD] China's exports to the United States experienced a significant downturn in April 2025, plummeting by 21% year-on-year. This sharp decline follows the...

Leadership Asia
Image Credits: Unsplash
LeadershipMay 9, 2025 at 1:00:00 PM

Manager-employee disconnect undermines workplace morale

[WORLD] A growing number of managers report a more negative outlook on their teams' performance and overall morale than their employees themselves. This...

Finance Asia
Image Credits: Unsplash
FinanceMay 9, 2025 at 12:00:00 PM

Bursa Malaysia rises on banking and AI sector optimism

[MALAYSIA] Bursa Malaysia rebounded at the opening bell on Thursday, recovering from the previous session’s losses, driven by renewed buying interest in select...

Economy Asia
Image Credits: Unsplash
EconomyMay 9, 2025 at 12:00:00 PM

Trump optimistic about US-China trade talks

[WORLD] US President Donald Trump stated yesterday that he expects meaningful trade discussions between the US and China to take place this weekend,...

Finance Asia
Image Credits: Unsplash
FinanceMay 9, 2025 at 10:30:00 AM

Bank Negara signals policy shift

[MALAYSIA]

Finance Asia
Image Credits: Open Privilege
FinanceMay 9, 2025 at 10:00:00 AM

Ringgit rises on trade optimism amid US dollar strength

[MALAYSIA] The ringgit opened stronger against the US dollar today, buoyed by improved market sentiment stemming from recent developments in global trade tariffs...

Politics Asia
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

The unraveling of the Western world order

[UNITED STATES] The West stands at a pivotal moment in history. The trajectories of civilizations—rising, falling, and evolving—are often shaped by the choices...

Politics Asia
Image Credits: Unsplash
PoliticsMay 9, 2025 at 10:00:00 AM

Hong Kong must become aware of the perils of US port and maritime concerns

[WORLD] As U.S. President Donald Trump escalates tariffs on Chinese imports, concerns of a deepening trade war cast a shadow over the global...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege