Kuala lumpur: The ringgit opened on a steady note against the US dollar while showing gains against other major currencies on Tuesday, bolstered by robust economic data from Malaysia that helped mitigate the effects of increased global market volatility.
According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) reported on Monday that Malaysia's exports surged by 45.4 percent to RM177.9 billion, and imports increased by 43.9 percent to RM163.0 billion, resulting in a trade surplus that soared by 64.9 percent to RM14.9 billion for the period under review.
At 8 am, the ringgit stood unchanged from its previous close at 4.0895/0950 against the US dollar. Stephen Innes, managing partner at SPI Asset Management, noted that the US dollar was trading slightly stronger across the board due to a brief rise in oil prices. This was influenced by US President Donald Trump's warning that Iran would face consequences for the deaths of American servicemen, in addition to new Houthi threats against Saudi shipping in the Red Sea.
The fluctuations in the oil market saw Brent crude dip by 0.12 percent to US$82.38 per barrel, while West Texas Intermediate dropped by 0.45 percent to US$88.82 per barrel. Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, projected that the ringgit would likely continue trading within a narrow range against the US dollar, potentially around 4.09 to 4.10.
He further elaborated that the US dollar index (DXY) remained elevated at 100.996 points, reflecting weak risk appetite among traders. The ongoing situation in the Middle East was highlighted as a focal point, with the Iran-aligned Houthis in Yemen announcing plans to impose a naval blockade on Saudi Arabia for vessels passing through the Bab el-Mandeb Strait.
The ringgit also recorded firmer positions against a set of major currencies. It appreciated against the British pound to 5.4926/5000 from 5.5049/5123 at Monday's close, gained strength versus the euro to 4.6686/6749 from 4.6743/6806, and rose against the Japanese yen to 2.5169/5205 from 2.5177/5212.
In terms of regional peers, the ringgit showed a mixed performance. It gained slightly against the Singapore dollar to 3.1675/1722 from the previous close of 3.1677/1722, strengthened against the Thai baht to 12.1512/1734 from 12.1556/1759, remained unchanged against the Indonesian rupiah at 227.8/228.2, and was steady against the Philippine peso at 6.63/6.64.