Ad Banner
Advertisement by Open Privilege
Malaysia

Ringgit rises on trade optimism amid US dollar strength

Image Credits: Open PrivilegeImage Credits: Open Privilege
  • The ringgit strengthened against the US dollar amid optimism over US-China trade talks and a recent US-UK tariff reduction deal.
  • Analysts warn that persistent US tariffs and a stronger US dollar (DXY at 100.64) could limit further ringgit gains.
  • The currency also rose against major and ASEAN currencies, supported by stable domestic economic indicators but remains vulnerable to external risks.

[MALAYSIA] The ringgit opened stronger against the US dollar today, buoyed by improved market sentiment stemming from recent developments in global trade tariffs involving major economies such as China and the United Kingdom, according to economists. At 8 am, the local currency advanced to 4.2715/2905 against the greenback, compared with Thursday’s closing rate of 4.2780/2830.

The slight appreciation in the ringgit’s value mirrors a broader market response to a reduction in geopolitical tensions, particularly following indications from Beijing of a readiness to resume trade talks with Western nations. Analysts believe that any progress in easing long-standing trade frictions could lend near-term support to emerging market currencies, including the ringgit.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said sentiment remains upbeat on expectations that ongoing trade discussions between the US and China may yield favourable outcomes this week.

"Optimism is largely driven by the recent US-UK trade agreement, which included tariff reductions on vehicles and steel products," he told. "That said, the 10 per cent tariff remains in place, indicating that some of the tariff-related shocks could still affect markets in the months ahead,” he added.

Meanwhile, investors are keeping a close watch on upcoming policy decisions by the US Federal Reserve. Any indications of extended periods of elevated interest rates could further bolster the US dollar, potentially limiting gains in the ringgit, especially if risk-averse sentiment returns to global markets.

Dr Afzanizam noted that the US Dollar Index (DXY) climbed 1.03 per cent to 100.64 points, while yields on US Treasury notes rose — with the 2-year and 10-year papers gaining 10 and 11 basis points to settle at 3.87 per cent and 4.38 per cent, respectively. "In light of these developments, the ringgit may face further corrections as the greenback continues to attract demand,” he said.

On the domestic front, steady economic indicators such as stable inflation and consistent export growth have provided a favourable backdrop for the ringgit. However, external pressures — including volatile commodity prices and shifts in investor appetite for emerging markets — remain key factors that could shape the currency’s direction in the near term.

In broader currency markets, the ringgit also posted gains against a range of major and regional currencies at the opening. The local unit strengthened against the Japanese yen to 2.9269/9401 from 2.9534/9571, appreciated versus the euro to 4.7960/8174 from 4.8264/8321, and rose against the British pound to 5.6555/6806 from 5.6769/6835 previously.

Among regional peers, the ringgit improved against the Singapore dollar to 3.2848/2999 from 3.2984/3025, and gained ground on the Thai baht at 12.9216/9885 from 13.0189/0404. It also edged up against the Philippine peso to 7.68/7.72 from 7.69/7.70, and firmed slightly against the Indonesian rupiah to 258.8/260.1 from 259.2/259.6.


Ad Banner
Advertisement by Open Privilege

Read More

Culture United States
Image Credits: Unsplash
CultureMay 14, 2025 at 5:00:00 PM

Are employers pushing down on remote work in order to induce staff to quit?

[UNITED STATES] As return-to-office mandates intensify across corporate America, questions mount over whether companies are using these policies as a covert strategy to...

Economy United States
Image Credits: Unsplash
EconomyMay 14, 2025 at 4:30:00 PM

Trump's tariff plans and their timing

[WORLD] As President Donald Trump’s administration continues to reshape U.S. trade policy, the timing and implementation of tariffs have become a central issue...

Health & Wellness United States
Image Credits: Unsplash
Health & WellnessMay 14, 2025 at 4:30:00 PM

Dealing with a toxic boss

[WORLD] A toxic boss can significantly impact your mental and physical well-being, leading to stress, anxiety, and burnout. Recognizing the signs and implementing...

Relationships United States
Image Credits: Unsplash
RelationshipsMay 14, 2025 at 3:30:00 PM

Newborns establish memories that are difficult to recover later

[WORLD] A groundbreaking study has shown that infants as young as 12 months can form memories, challenging long-held beliefs about early childhood cognition....

Loans United States
Image Credits: Unsplash
LoansMay 14, 2025 at 12:30:00 PM

Student loan delinquencies surge as Federal collections resume

[UNITED STATES] Americans now collectively hold a record $18.2 trillion in debt, spanning credit cards, mortgages, auto loans, home equity lines of credit,...

Economy United States
Image Credits: Unsplash
EconomyMay 14, 2025 at 12:30:00 PM

Hong Kong exporters rush to US amid temporary tariff relief

[WORLD] Hong Kong is set to experience a sharp uptick in exports over the next two months as merchants accelerate shipments to the...

Politics United States
Image Credits: Unsplash
PoliticsMay 14, 2025 at 12:30:00 PM

Malaysia seeks reparations from Russia over MH17 tragedy

[MALAYSIA] As Prime Minister Anwar Ibrahim embarks on a four-day official visit to Russia, pressure is mounting on Malaysia’s government to demand reparations...

Tax United States
Image Credits: Unsplash
TaxMay 14, 2025 at 12:00:00 PM

Trump’s tax cuts and their lasting impact

[UNITED STATES] The Trump administration’s 2017 tax reform, commonly known as the Tax Cuts and Jobs Act (TCJA), promised significant tax relief for...

Health & Wellness United States
Image Credits: Unsplash
Health & WellnessMay 14, 2025 at 11:30:00 AM

Fitting exercise into a busy workday

[WORLD] You are too busy to exercise, right? Your job absorbs all of your time. You are burdened by career and familial obligations....

Tech United States
Image Credits: Unsplash
TechMay 14, 2025 at 11:00:00 AM

Hong Kong stocks climb on JD.com earnings as tech giants await spotlight

[WORLD] Hong Kong stocks saw gains as JD.com posted its fastest earnings growth in three years, sparking optimism among investors ahead of results...

Finance United States
Image Credits: Unsplash
FinanceMay 14, 2025 at 10:30:00 AM

S&P 500 rebounds as inflation cools

[UNITED STATES] The S&P 500 Index has officially erased its year-to-date losses as of May 13, 2025, marking a significant rebound from earlier...

Economy United States
Image Credits: Unsplash
EconomyMay 14, 2025 at 10:00:00 AM

Malaysia and Russia strengthen economic ties

[MALAYSIA] Malaysia and Russia are poised to strengthen trade and investment relations, aiming to streamline bilateral transactions and deepen economic collaboration during Prime...

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