BERNAMA – The Malaysian ringgit opened marginally higher against the United States (US) dollar amid mixed market sentiment with the US Federal Reserve which is likely to continue its interest rate cuts with bond yields sliding amid uncertainties over tariffs.
At 8am, the ringgit strengthened to 4.4255/4340 from 4260/4305 at Wednesday’s close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the market would remain focused on evaluating US economic policies, while tomorrow’s attention would be on the US Personal Consumption Expenditures (PCE) inflation, the Federal Reserve’s preferred inflation gauge.
Mohd Afzanizam said uncertainties over the Trump tariff are set to dominate market sentiments with the latest development showing that the US President would impose tariffs on Canada and Mexico, but there is uncertainty over the deadline although Trump did mention April 2.
“In the bond markets, the seven-year US Treasury note auction drew lower yields at 4.194 per cent versus 4.457 per cent in the previous auction, suggesting increasing prospects for a lower interest rate environment.
“As for the US Dollar Index (DXY), the index climbed 0.16 per cent to 106.477 points,” he added.
For headline PCE and core PCE, both are expected to moderate to 2.5 per cent (December 2024: 2.6 per cent) and 2.6 per cent (December 2024: 2.8 per cent), respectively, in January based on consensus estimates.
“As such, ringgit could stay in a narrow range and continue to hover near its immediate resistant level of MYR4.43,” Mohd Afzanizam said. Meanwhile, the ringgit was traded weaker against major currencies.
It weakened further against the Japanese yen to 2.9733/9792 from 2.9631/9663, declined against the British pound to 5.6102/6210 from 5.5993/6050 registered at Wednesday’s close, but strengthened against the euro to 4.6401/6490 from 4.6455/6503.
The Malaysian currency was traded mixed against ASEAN currencies.
It almost flat against the Singapore dollar at 3.3075/3144 from 3.3079/3115 and was unchanged against the Philippine peso at 7.64/7.66.
It rose against the Thai baht to 13.1013/1389 from Wednesday’s close of 13.1281/1469 and inched up against the Indonesian rupiah to 270.1/270.7 from 270.2/270.5.
