Ringgit opens higher despite stronger US dollar on Trump's return


KUALA LUMPUR: The ringgit opened slightly higher against the greenback, while the US Dollar Index rose to 105.009 points, a 1.5% increase from the previous day’s close.

At 8am on Thursday (Nov 7) the ringgit stood at 4.3995/4340 against the US dollar, rising from yesterday’s close of 4.4000/4070.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Donald Trump's return to the US presidency has driven increased demand for the US dollar and equities.

He noted that 10-year US Treasury yields climbed 16 basis points to 4.43 per cent, signalling a "risk-on" mode in financial markets.

President-elect Trump is expected to favour populist measures which could drive higher domestic demand and corporate earnings growth.

This outlook raises questions about how the US Federal Reserve will approach monetary policy amidst these developments given the potential implications for policy direction.

"As a result, we can expect emerging market currencies, including the ringgit, to remain subdued and cautious. Tonight’s Federal Open Market Committee (FOMC) meeting will be crucial as market participants closely watch the accompanying statement on interest rate decisions,” he told Bernama.

The ringgit was firmer against a basket of major currencies.

It rose vis-a-vis the British pound to 5.6674/7119 from 5.6751/6841, went up versus the Japanese yen to 2.8500/8727 from 2.8558/8606 yesterday, and appreciated against the euro to 4.7215/7586 from 4.7313/7388.

The local note traded mostly higher versus ASEAN currencies.

It strengthened vis-a-vis the Singapore dollar to 3.2997/3258 from 3.3073/312, appreciated against the Thai baht to 12.7907/12.9015 from 12.8768/9048 and gained versus the Philippine peso to 7.49/7.56 from 7.50/7.51.

The ringgit was flat against the Indonesian rupiah at 277.8/280.1 from 277.8/278.4. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
Ringgit , US dollar , opening ,  US presidency , FOMC

Next In Nation

Only registered firms are considered recipients of incentives
Missing MyKad leads to forgery syndicate bust
EPF’s i-Saraan sees significant growth
PM: RM1.1bil must be repaid
Drug traffickers exploiting Malaysia
Higher GP fees get green light
Vital to promote PWP awareness, say groups
MACC to review NRD processes over birth registration
Ring behind fake birth certs busted
Promising start to new wage policy

Others Also Read