Ringgit opens stronger on higher expectation of US rate cut

At 8 am, the local note further appreciated to 4.4085/4210 against the greenback from 4.4110/4145 at Friday's close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US DXY dropped to 103.830 points, suggesting an upside potential for the ringgit.

Highlighting other factors behind the ringgit's rally, he pointed out that the latest United States (US) job market data shows signs of a weakening trend, with the labour force participation rate dropping to 62.4 per cent, the lowest since January 2023, while the unemployment rate edged up to 4.1 per cent in February, from 4.0 per cent previously.

"During a Sunday interview with Fox News, US President Donald Trump indicated that the US economy is in a period of transition, deflecting concern on recessions.

"The degree of economic uncertainties has heightened as the tariff policies can be seen as inconsistent, leading to difficulties in assessing the impact on the broader economy," he told Bernama.

Mohd Afzanizam said that as such, overall market sentiment could stay defensive in the immediate term.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

It rose versus the British pound to 5.7011/7172 from 5.7070/7115 at Friday's close, surged against the euro to 4.7876/8012 from 4.7903/7941 and went up vis-a-vis the Japanese yen to 2.9872/9961 from 2.9909/9935 previously.

The local currency also performed well against ASEAN currencies.

It was slightly up against the Singapore dollar to 3.3152/3251 from 3.3185/3214 last Friday, increased vis-a-vis the Thai baht to 13.0657/1109 from 13.1124/1290 and edged up versus the Indonesian rupiah to 270.5/271.4 from 270.6/271.0, but was flat against the Philippine peso at 7.71/7.74 from previous's 7.71/7.73.

-- BERNAMA