Ringgit Firmer Against US Dollar In Early Trade

By Siti Radziah Hamzah

 KUALA LUMPUR, July 24 (Bernama) -- The ringgit strengthened against the US dollar in early trade on Thursday, supported by improved market sentiment following the latest fiscal support measures.

At 8.07 am, the local note rose to 4.2140/2320 against the greenback from Wednesday’s close of 4.2255/2300.

“A dash of cash handouts adds lift (to the ringgit): Prime Minister Datuk Seri Anwar Ibrahim announced a RM100 cash handout for all adult Malaysians and a plan to lower fuel prices, aimed at easing cost-of-living pressures and likely to cycle quickly back into the local economy,” SPI Asset Management managing partner Stephen Innes told Bernama.

Innes also noted that the ringgit opened a touch firmer, though with a cautious step, as traders weighed the absence of a formal US-Malaysia trade deal against growing signs that one may soon be in the cards.

“Optimism still lingers around the announcement of the US-Japan agreement, and whispers of a pending US-European Union (EU) pact, awaiting a signature Trump reveal, are keeping risk appetite supported,” he added.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said anticipation of a possible trade deal between the US and the EU has fuelled positive sentiment in the US benchmark equities, while yields on US Treasury bonds were also higher.

He noted that there appeared to be a risk-on mode in the financial markets, which has led the US Dollar Index to drop 0.18 per cent to 97.214 points.

“As such, expect the ringgit to remain positive today, with the US dollar/ringgit likely to oscillate between RM4.22 and RM4.23,” said Mohd Afzanizam.

At the opening, the ringgit was mostly higher against a basket of major currencies.

It advanced against the Japanese yen to 2.8774/8899 from 2.8837/8870 and was slightly higher against the British pound at 5.7201/7445 from 5.7230/7291. However, the ringgit eased slightly against the euro to 4.9590/9802 from 4.9586/9639.

The local note was firmer against regional peers.

It rose vis-à-vis the Singapore dollar to 3.3007/3153 from 3.3071/3109 and appreciated against the Indonesian rupiah to 258.4/259.6 from 259.1/259.5.

The ringgit also inched higher against the Philippine peso to 7.40/7.44 from 7.42/7.44 and increased against the Thai baht to 13.0992/1613 from 13.1370/1567.

-- BERNAMA