KUALA LUMPUR – The ringgit was slightly higher against the US dollar in early trade amid a higher US Dollar Index (DXY) coupled with gains in US Treasury bonds, said an analyst.
At 8.21am, the ringgit stood at 4.4430/4490 versus 4.4440/4480 from yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the DXY gained 0.41% to 107.009 points while the two and 10-year US Treasury bonds yields were higher by five and seven basis points to 4.31% and 4.55% respectively.
“This (performance) occurred following San Francisco Federal Reserve president Mary Daly’s comment that the US Federal Reserve (Fed) Fund Rate needs to stay restrictive until there is clear evidence that inflation is moving towards the 2% goal.
“As such, the ringgit versus the US dollar could stay in a narrow range today,” he told Bernama today.
Afzanizam also noted that the policy uncertainties regarding import tariffs and a seemingly positive development in the Ukraine war with Russia, as well as a proposal to take over Gaza, resulted in mixed sentiments as it remains uncertain how these developments will help stabilise the geopolitical risk premium.
He said the shift from risk-on to risk-off mode is going to be regular, leading to volatility in the financial markets.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
It appreciated versus the euro to 4.6407/6470 from 4.6511/6553 at Tuesday’s close and advanced against the Japanese yen to 2.9246/9287 from 2.9272/9302 yesterday but fell vis-a-vis the British pound to 5.6080/6155 from 5.6030/6080 previously.
The local note traded mixed against Asean currencies.
The ringgit increased against the Singapore dollar to 3.3095/3142 from 3.3115/3150 at market close yesterday, but it slipped versus the Thai baht to 13.1942/2194 from 13.1881/2067.
However, it traded almost flat against the Indonesian rupiah and the Philippine peso to 272.9/273.4 from yesterday’s 272.9/273.3 and 7.63/7.65 from 7.63/7.64 at Tuesday’s close, respectively. – February 19, 2025