KUALA LUMPUR — The ringgit weakened against the US dollar at today’s opening, continuing its downtrend due to higher demand pressure for the greenback.
At 8 am, the ringgit fell to 4.4850/4950 against the US dollar from Thursday’s close of 4.4760/4810.
As the new year unfolds, SPI Asset Management managing partner Stephen Innes said the US dollar is gaining momentum, driven by traders positioning for potential US president-elect Donald Trump’s tariffs which could initially weaken all Asian foreign exchange (FX) currencies.
He said the resilience of the US economy suggested that the US Federal Reserve (Fed) is likely to hold interest rates steady in January.
“This anticipation exacerbates regional currency anxieties as market participants brace for the broader implications of US trade and monetary policy decisions on global currency dynamics,” Innes told Bernama.
Nonetheless, the ringgit was trading higher against other major currencies.
It gained versus the Japanese yen to 2.8498/8565 from Thursday’s close of 2.8546/8580, appreciated against the British pound to 5.5520/5644 from 5.5869/5932 previously and strengthened vis-a-vis the euro to 4.6047/6150 from 4.6336/6387 at yesterday’s close.
Meanwhile, the local note traded mostly easier against ASEAN currencies.
It rose against the Singapore dollar to 3.2744/2822 from 3.2859/2898 at the previous close but marginally slid versus the Philippine peso to 7.74/7.74 from 7.73/7.75.
The ringgit eased against the Thai baht to 13.0640/0756 from 13.0530/0744 on Thursday and was lower vis-a-vis the Indonesian rupiah at 276.8/277.6 compared with 276.2/276.7 previously. – January 3, 2025