Ringgit opens lower as greenback gains ground

KUALA LUMPUR: The ringgit opened weaker against the US dollar on Tuesday as the greenback regained strength, supported by a rebound in the US Dollar Index (DXY) from recent declines.

At 8 am, the ringgit traded at 4.4590/4700 against the US dollar, softening from Monday's close of 4.4495/4570.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the market had responded positively to news of hedge fund manager Scott Bessent heading the US Treasury Department.

He said this development had fostered a risk-on sentiment.

"As a result, the ringgit may benefit from a potential shift away from the US dollar to other emerging market currencies," he told Bernama.

The ringgit traded mostly higher against a basket of major currencies.

It appreciated against the British pound to 5.5862/6000 from 5.5939/6033 and rose against the euro to 4.6548/6662 from 4.6662/6741 at Monday's close.

However, it edged lower against the Japanese yen to 2.8880/8955 from 2.8811/8861.

The local unit traded mostly lower against ASEAN currencies.

It fell against the Singapore dollar to 3.3032/3118 from 3.3028/3088, declined against the Philippine peso to 7.56/7.58 from 7.54/7.56, and slipped vis-a-vis the Indonesian rupiah to 280.7/281.5 from 280.1/280.7.

However, it rose against the Thai baht to 12.8361/8818 from 12.8390/8670.

-- BERNAMA