Ringgit opens higher against greenback as DXY retreats

KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Monday due to a decline in the US Dollar Index (DXY) following its recent two-year high, according to an analyst.

At 8 am, the local currency stood at 4.4650/4765 against the US dollar, compared with Friday’s close at 4.4660/4710.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that US President-elect Donald Trump’s cabinet selections are drawing significant attention.

He highlighted that the appointment of Scott Bessent, a hedge fund manager, as Treasury Secretary appears to be moderating the optimism surrounding Trump’s 2.0 policy agenda.

“He may seem keen to ensure the financial markets will function in an orderly manner and keeping a close tab on the burgeoning fiscal deficits could be his priority.

“On that note, the ringgit is expected to fare better as the DXY has corrected somewhat following the excessive gains post-US presidential election on Nov 5,” he told Bernama.

However, the ringgit traded lower against a basket of major currencies.

It weakened against the British pound to 5.6223/6368 from 5.5870/5932 at the close last week, fell against the euro to 4.6793/6914 from 4.6455/6507 and declined against the Japanese yen to 2.8965/9044 from 2.8906/8942 previously.

The local unit traded lower against ASEAN currencies.

The ringgit weakened against the Singapore dollar at 3.3244/3335 compared to 3.3101/3141 on Friday’s close and depreciated against the Thai baht to 12.9608/13.0048 from 12.9068/9276.

It was nearly unchanged against the Philippine peso at 7.58/7.60 from 7.58/7.59 and also versus the Indonesian rupiah at 281.2/282.1 from 281.2/281.7 previously. – Bernama