Ringgit Rises Amid Stronger US Dollar as Trump Returns to Presidency

The ringgit opened slightly higher against the US dollar, trading at 4.3995/4340, as the US Dollar Index surged by 1.5% to 105.009 points. This uptick followed Donald Trump’s re-election as US President, which has sparked stronger demand for the US dollar and equities.

Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that Trump’s return led to a “risk-on” sentiment in financial markets, with 10-year US Treasury yields increasing by 16 basis points to 4.43%. This could indicate an inclination towards populist policies likely to boost domestic demand and corporate earnings in the US.

Ringgit Faces Cautious Outlook

With emerging market currencies such as the ringgit expected to stay cautious, tonight’s Federal Open Market Committee (FOMC) meeting could further influence currency markets, as traders watch for signals on interest rates.

The ringgit also strengthened against other major currencies: it rose against the British pound to 5.6674/7119, the Japanese yen to 2.8500/8727, and the euro to 4.7215/7586. Gains were noted versus ASEAN currencies like the Singapore dollar, Thai baht, and Philippine peso, though it remained steady against the Indonesian rupiah.

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