Ringgit Slightly Up Against US Dollar Amid Post-Election Volatility
The ringgit opened slightly higher on Tuesday, as the US dollar retreated following its post-election rally.
Opening Gains After Election Rally
KUALA LUMPUR: The Malaysian ringgit opened slightly stronger against the US dollar on Tuesday after a retreat in the dollar’s strength following the recent election results. At 8:05 a.m., the ringgit was trading at 4.4080/4200, up from the previous day’s closing rate of 4.4090/4120.
Innes Comments on the US Dollar’s Strength
According to Stephen Innes of SPI Asset Management, the recent strength of the US dollar was linked to market speculations around potential economic policies and the return of tariffs under a second Trump administration. However, this situation is considered unfavorable for export-dependent ASEAN economies, which rely on stable currency conditions for trade.
Cautious Optimism in FX Markets
Innes further stated that the dollar’s rally had been fueled by rumors about the return of Robert Lighthizer to the trade representative role. Despite Reuters dismissing the rumors, market traders remained cautious, concerned that Lighthizer’s return could lead to a more aggressive trade policy, adding volatility to the Asian FX markets.
