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Ringgit extends uptrend against greenback in early trade

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The Malaysian ringgit strengthened slightly against the US dollar on Friday, trading at 4.4600/4700 compared to 4.4610/4650 on Thursday.

This follows robust US labor market data, which supports a measured monetary policy easing by the Federal Reserve, and pressure on the European Central Bank for rate cuts. The ringgit also gained against major currencies like the British pound and euro but weakened against the Japanese yen.

It showed mixed performance against ASEAN currencies, appreciating against the Singapore dollar and Thai baht.

The Malaysian ringgit has shown a modest recovery in recent sessions, extending its positive momentum against the US dollar and other major currencies. This slight appreciation reflects a combination of global and regional economic factors, including a stable US Federal Reserve stance and ongoing adjustments in global interest rate expectations.

Ringgit extends uptrend

The ringgit’s trajectory has been supported by broader regional optimism and easing concerns about aggressive monetary tightening in major economies. However, it remains sensitive to external pressures such as the robust US labor market and persistent strength in the US dollar, as highlighted by the elevated US Dollar Index (DXY).

Locally, the ringgit has performed well against the British pound, euro, and select ASEAN currencies like the Singapore dollar and Thai baht. However, fluctuations against currencies like the Japanese yen indicate mixed sentiment, with the trajectory influenced by global macroeconomic conditions and domestic economic policies.

Analysts expect the ringgit to trade within a narrow range in the near term, with limited prospects for significant gains unless broader economic conditions shift favorably.