KUALA LUMPUR: The ringgit rose against the US dollar in early Thursday trading, even as the greenback retained its status as a safe-haven currency amid prevailing risk-averse market sentiment.

According to BERNAMA News Agency, the ringgit appreciated to 4.4250/4355 against the US dollar compared to the previous day’s close of 4.4300/4355. This rise occurred despite the US dollar’s additional strength, supported by the US Dollar Index (DXY) maintaining elevated levels after the US Consumer Price Index (CPI) met expectations.

Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the November US CPI increased to 2.7 percent, up from 2.6 percent in the previous month. Meanwhile, the core CPI held steady at 3.3 percent for three consecutive months, indicating persistent inflation. He suggested that the US Federal Reserve is likely to maintain a hawkish stance in 2025, potentially continuing to cut rates as the current monetary policy is considered restrictive. However, policy rate
adjustments would be made judiciously given the visible upside risks to inflation posed by Trump 2.0 tariff policies, leading to expectations that the ringgit will remain range-bound.

The ringgit displayed mixed performance against major currencies. It weakened against the British pound to 5.6498/6632 from 5.6389/6459 and depreciated against the Japanese yen to 2.9083/9154 from 2.9013/9051 but strengthened against the euro to 4.6493/6604 from the previous close of 4.6515/6573.

In relation to ASEAN currencies, the ringgit showed varied trends. It fell against the Singapore dollar to 3.2951/3032 from 3.2937/2980 on Wednesday and declined against the Thai baht to 13.0817/1224 from 13.0640/0875. The ringgit remained unchanged against the Philippine peso at 7.59/7.61 but edged up against the Indonesian rupiah to 277.9/278.7 from a prior position of 278.2/278.7.