The Malaysian ringgit strengthened past RM3.90 against the US dollar, reaching its highest level since April 2018 as markets digest local data and global events.
KUALA LUMPUR: The ringgit extended its gains to open higher on Tuesday. It strengthened to 3.8790/9010 against the US dollar from Monday’s close of 3.8885/8925.
This marks the local unit’s strongest level since April 13, 2018, when it stood at 3.8785/8815. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit has appreciated 0.31% against the greenback.
He attributed the move to the US dollar piercing the psychological RM3.90 level following a US Supreme Court decision last Friday. “At this juncture, the support level for the ringgit against the US dollar is at RM3.8722,” he told Bernama.
Afzanizam noted that the foreign exchange market has priced in Malaysia’s positive macroeconomic data and recent tariff developments. “As such, we expect the ringgit to trade sideways in the near term,” he added.
He said uncertainties surrounding US trade policy and upcoming geopolitical developments would continue to shape sentiment. Talks between the US and Iran scheduled for Thursday are a key focus for traders.
“The US-Iran talks and the build-up of US military assets in the Middle East have led Brent crude to hover above US$70 per barrel in recent days,” Afzanizam said. He highlighted that a 10- to 15-day deadline set by US President Donald Trump to conclude nuclear talks could unsettle markets.
At the open, the ringgit also traded firmer against a basket of major currencies. It rose against the Japanese yen to 2.5076/5220 from 2.5120/5147 and strengthened versus the euro to 4.5745/6004 from 4.5888/5935.
The local note advanced against the British pound to 5.2347/2644 from 5.2526/2580. It also gained ground against most ASEAN peers.
The ringgit was higher against the Singapore dollar at 3.0633/0809 from 3.0727/0761. It strengthened versus the Thai baht to 12.5177/5969 from 12.5342/5532.
It rebounded against the Indonesian rupiah to 230.8/232.2 from 231.4/231.7. The local unit also edged up against the Philippine peso to 6.73/6.78 from 6.75/6.76.
The Sun Malaysia
