Ringgit Closes Slightly Higher Amid Weaker Us Dollar Index

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KUALA LUMPUR: The ringgit was slightly higher against the US dollar at the close today amid a decline in the US Dollar Index (DXY), said an analyst.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the DXY continued its downward trajectory to around 99 points today.“It remains to be seen whether the DXY would stay at such a low level despite the heightened uncertainties over import tariffs by the US government,” he told Bernama.
Afzanizam said the US dollar would appreciate as traders would flock to the safe haven to seek refuge against risk aversion.
“All six DXY components have recorded appreciation against the US dollar, particularly the Japanese yen and British pound, with both currencies gaining 0.77% and 0.61% to ¥142.44 and £1.32 per US dollar.
“The US dollar-ringgit seems to be attempting its psychological level of 4.40 and currently hovering at around 4.40, with the morning session seeing the US dollar-ringgit reaching 4.43,” he said.
SPI Asset Management managing partner Stephen Innes said the ringgit has regained momentum and clawed back from its losses through the session.
He said the positive performance was tracking the broader risk-on tone that followed US president Donald Trump’s 90-day technology (tech) tariff pause.
“The pause has given and showed optimism to Malaysia’s resurgent tech sector,” he added.
At 6pm, the local currency inched higher to 4.4100/4.4160 against the greenback, up from Friday’s close of 4.4200/4.4265.
Meanwhile, the ringgit traded mostly higher against major currencies.
It rose against the Japanese yen to 3.0811/3.0855 from 3.0952/3.1000, gained versus the euro to 5.0199/5.0267 from 5.0207/5.0281, but decreased vis-a-vis the British pound to 5.8097/5.8176 from 5.7849/5.7934.
The local currency traded mostly higher against Asean currencies.
It inched up versus the Indonesian rupiah to 262.6/263.2 from 263.1/263.6, appreciated versus the Thai baht to 13.1481/13.1754 from 13.1599/13.1902 and edged higher vis-a-vis the Philippine peso to 7.72/7.74 from 7.75/7.77.
However, the local currency traded slightly lower against the Singapore dollar at 3.3506/3.3556 versus 3.3495/3.3549 previously. - FMT

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