KUALA LUMPUR — The ringgit opened marginally higher against the US dollar on Tuesday, lifted by a brief easing in the dollar’s strength after an election-driven surge, analysts said.
Market corrections supported the ringgit’s slight rebound, analysts noted, as traders recalibrated their positions following recent currency market fluctuations.
At 8.05 am, the ringgit inched up to 4.4080/4200 against the US dollar, compared to Monday’s close of 4.4090/4120.
SPI Asset Management managing director Stephen Innes told Bernama that the US dollar’s strength has been bolstered by speculation surrounding the potential reintroduction of Trump-era tariffs.
“This scenario is generally unfavourable for ASEAN’s export-driven economies,” he said.
Innes added that the recent rally in the US dollar was initially sparked by late-Friday rumours that Trump might reinstate his “Tariff Titan,” Robert Lighthizer, as trade representative.
“Although Reuters quickly tempered the excitement with insider denials, foreign exchange (FX) traders remain vigilant.
“Should Lighthizer return, a second Trump administration could adopt a more aggressive stance on global trade, which may cause volatility in Asian FX markets as they prepare for potentially challenging conditions,” he added.
At the opening, the ringgit was mostly higher against a basket of major currencies.
It rose against the British pound to 5.6735/6890 from 5.6872/6910 and advanced against the euro to 4.6998/7126 from 4.7088/7120 at Monday’s close.
However, it was marginally lower against the Japanese yen, slipping to 2.8705/8785 from 2.8701/8722 previously.
The ringgit traded higher against ASEAN currencies.
It strengthened against the Singapore dollar at 3.3056/3151 from 3.3120/3148 and gained against the Thai baht at 12.7698/8138 from 12.8243/8390 at Monday’s close.
It was nearly flat against the Philippine peso at 7.52/7.54 from 7.52/7.53, and also mostly steady against the Indonesian rupiah at 280.9/281.8 from 280.9/281.3 previously. – November 12, 2024