KUALA LUMPUR, July 29 — The ringgit opened higher today against the United States dollar and other major and regional currencies, supported by easing global trade tensions that lifted investor sentiment, an analyst said.
At 8.01am, the local note rose to 4.2140/2460 against the greenback from yesterday’s close of 4.2275/2345.
However, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) had been buoyed by optimism ahead of upcoming China-US trade talks.
The DXY gained 1.03 per cent to 98.653 points, as officials from both countries engage in talks in Sweden on a possible trade truce, he told Bernama.
“The two-day Federal Open Market Committee meeting, which starts today, will be in the spotlight, with consensus expecting no change to the Fed Funds Rate.
“The US labour market will be closely watched, with July’s Nonfarm Payrolls report due Friday. The market expects a softer print of 108,000, down from 147,000 in June,” he said.
Afzanizam noted that the ringgit had weakened 0.21 per cent against the US dollar to RM4.2310 yesterday, amid ongoing trade talks between Malaysia and the US.
Malaysia is engaging with the US to avert the impending 25 per cent tariffs set to take effect on August 1, seeking a rate below 20 per cent.
Meanwhile, extended China-US negotiations could signal a prolonged truce, suggesting Washington remains sensitive to the tariffs’ potential impact on the domestic economy.
“However, tariff shocks are likely to increase downside risks to global growth in the second half of 2025 and beyond, as higher costs of doing business in the US could dampen aggregate demand.
“The current term of the Fed chair ends in May next year, and it appears likely that Jerome Powell’s successor will be more aligned with the US president’s preference for lower interest rates as a policy stance,” he added.
Afzanizam expects the ringgit to trade in a narrow range, likely between RM4.23 and RM4.24 today.
At the open, the ringgit traded higher against most major currencies.
It rose against the Japanese yen to 2.8383/8600 from 2.8497/8546 at yesterday’s close, appreciated versus the British pound to 5.6286/6714 from 5.6720/6814, and strengthened against the euro to 4.8861/9232 from 4.9331/9412 previously.
The local note was also firmer against regional peers.
It improved against the Indonesian rupiah to 257.4/259.6 from 258.3/258.9, gained versus the Singapore dollar to 3.2750/3004 from 3.2917/2974, strengthened against the Thai baht to 12.9626/13.0702 from 13.0511/0787, and inched up against the Philippine peso to 7.37/7.43 from 7.39/7.41 previously.
