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KUALA LUMPUR, May 27 - The Malaysian ringgit (RM) started the day strong against the US dollar, bolstered by lingering concerns over the nation's fiscal stability and trade policy uncertainties.
At 8:05 am, the ringgit climbed to 4.2050/2250 against the US dollar, marking a rise from Monday's close of 4.2155/2220.
Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, attributed the ringgit's growth to the ongoing descent of the US Dollar Index (DXY), which dipped to 98.934 points. This decline echoed investor apprehension concerning the US trade policy under President Donald Trump.
"The lingering delay in imposing a 50 percent tariff on European Union goods until July 9, 2025, indication of uncertainty in the Trump administration's trade stance, has undermined investor confidence in the US dollar," explained Dr. Mohd Afzanizam.
Furthermore, the anticipated expansion of fiscal measures in the US, expected to widen its fiscal deficit and add to its national debt levels, further contributed to this uncertainty.
"In this context, emerging market currencies, including the ringgit, have managed to appreciate, supported by strengthening capital inflows and improved risk appetite," he added.
Dr. Mohd Afzanizam also predicted that, given the current policy tone, the ringgit might sustain its positive momentum in the short term.
At the close, the ringgit also rose against a basket of major currencies. It gained against the euro to 4.7903/8131, versus 4.7972/8046 on Monday. Similarly, it rose against the British pound to 5.7058/7329 from 5.7175/7263, and expanded versus the Japanese yen to 2.9500/9643 from 2.9506/9553.
The ringgit appreciated against its ASEAN peers as well. It improved against the Singapore dollar to 3.2757/2915 from 3.2826/2879, strengthened against the Thai baht to 12.8992/9745 from 12.9231/9466, advanced vis-à-vis the Philippine peso to 7.58/7.63 from 7.60/7.62, and appreciated against the Indonesian rupiah to 258.7/260.1 from 259.4/259.9.
- Amidst ongoing concerns about Malaysia's fiscal stability and trade policy uncertainties, the news about the Malaysian ringgit's growth against the US dollar has been making headlines in the general-news sector.
- For those interested in personal-finance and investing, the strengthening of the Malaysian ringgit against the US dollar, EURO, British pound, Japanese yen, and other ASEAN currencies is an encouraging sign for the local business and finance industry in Kuala Lumpur.
- As Bank Muamalat Malaysia Bhd's chief economist pointed out, the descending US Dollar Index, the anticipated expansion of fiscal measures in the US, and the delay in imposing tariffs on EU goods have contributed to the rise in the value of the Malaysian ringgit.
- In the realm of technology and education-and-self-development, the improved economic conditions in Malaysia may support local businesses, fostering innovation and entrepreneurship within the lifestyle and entertainment sectors.
- Aspiring investors can take note of the factors influencing the Malaysian ringgit, such as trade policy uncertainties and geopolitical events, as part of their overall strategy for long-term wealth creation.
- As the market continues to evolve, it is essential to stay updated on the latest news and trends in Malaysia's finance and business landscape, including the fluctuations in Malaysia's currency, to make informed decisions in today's dynamic global economy.
