kuala lumpurAnalysts said the ringgit strengthened against the US dollar in early trade on Tuesday on improved buying sentiment against the local currency.
As of 8:02am, the ringgit had strengthened against the dollar to 4.4200/4300, compared with Monday’s closing price of 4.4225/4280.
However, the US dollar index (DXY) remains high at around 106 points, which will accelerate demand for the US dollar, said Bank Muamarat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid. Ta.
He said rising geopolitical risks amid the resilience of the U.S. economy appeared to be pushing up the dollar’s value as traders sought to escape market uncertainty.
“Market participants are focused on the US Consumer Price Index report to be released on December 11th, with the market consensus that US core inflation will remain at 3.3% for the third consecutive month, while November We now expect the index to rise by 2.7% from the previous 2.6%.”
“This means the market is looking for more sticky inflation, which will lead to a hawkish stance from the US Federal Reserve, thus leading to another deep rate cut in 2025. “It seems unlikely,” he told Bernama.
In that regard, the ringgit is likely to hover around 4.42 to 4.43 ringgit today, he added.
The ringgit appreciated against a basket of major currencies.
Against the British pound, it rose to 5.6346/6474 from Monday’s 5.6466/6537, against the euro it rose from 4.6733/6791 to 4.6640/6745, and against the Japanese yen it rose slightly from 2.9401/9440 to 2.9198/9266.
Local banknotes also performed mostly well against ASEAN currencies.
The exchange rate against the Singapore dollar rose slightly to 3.2968/3045 from Monday’s close of 3.3019/3062, while the exchange rate against the Philippine peso was flat at 7.62/7.64 from 7.62/7.63.
The local unit also rose against the Thai baht to 13.0785/1205 from 13.0801/1029 yesterday, and against the Indonesian rupiah it edged up to 278.5/279.3 from 278.7/279.2 last time.
