Kuala Lumpur: The ringgit extended its gains to open higher against the US dollar on Monday, as the greenback weakened to a fresh three-year low amid escalating US-China trade tensions. At 8 am, the local unit rose 1.06 percent to 4.4185/4270 against the greenback, compared with 4.4200/4265 at last Friday’s close.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) had fallen below the 100-point mark. He described this movement as puzzling given the heightened risk aversion over trade and tariff uncertainties. Despite US President Donald Trump announcing a reprieve on tariffs for smartphones and computers over the weekend, market sentiment remained fragile.
Dr. Mohd Afzanizam highlighted that US data, particularly the University of Michigan Consumer Sentiment Index, dropped to 50.8 points in April. This drop suggests that consumers may remain cautious with their spending. He mentioned that the dollar-ringgit is lik
ely to stay within a narrow range, though with a slight positive bias, as the DXY has declined significantly.
The ringgit also traded higher against several major currencies. It strengthened against the Japanese yen to 3.0761/0822 from 3.0952/1000, rose against the euro to 5.0123/0220 from 5.0207/0281, and edged up against the British pound to 5.7820/7932 from 5.7849/7934.
Meanwhile, the local note showed mixed performance against ASEAN currencies. It was slightly higher against the Singapore dollar at 3.3491/3566 from 3.3495/3549 but weakened against the Thai baht to 13.1778/2141 from 13.1599/1902. The local note was little changed against the Indonesian rupiah at 263.0/263.7 compared with 263.1/263.6 previously and held steady against the Philippine peso at 7.75/7.77.