Kuala Lumpur: The ringgit opened higher against the US dollar as market participants kept a close watch on the ongoing uncertainties related to US tariff policies.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted a decline of 0.83 percent in the US Dollar Index (DXY), which settled at 99.380 points. The local currency rose by 0.20 percent to 4.3960/4080 against the greenback at 8 am, compared to the previous day’s close of 4.4085/4135.

Dr. Mohd Afzanizam explained that the drop in the DXY followed Federal Reserve chairman Jerome Powell’s remarks about significant uncertainties surrounding the US tariff policies. Powell also warned that the ongoing policy inconsistencies could jeopardize the Fed’s dual mandate of maintaining price stability and achieving full employment.

He further mentioned that US equity futures experienced a decline, reflecting market disappointment over the Fed’s potential cautious approach, contrary to the expectation for a more decisive rate cut. Dr. Mohd Afzanizam added, “Yesterday, the ringgit strengthened by 0.34 percent against the US dollar to RM4.4110. Given the softer DXY, the US dollar-ringgit pair could trade within the RM4.4000 to RM4.4100 range today.”

Meanwhile, the ringgit exhibited mixed performance against major currencies. It fell against the euro to 5.0088/0225 from 5.0072/0129 and eased against the Japanese yen to 3.0947/1036 from 3.0861/0898. However, it appreciated vis- -vis the British pound to 5.8159/8318 from 5.8488/8554 previously.

In the ASEAN currency market, the ringgit showed a mostly firmer trend. It was marginally higher against the Indonesian rupiah at 261.0/261.9 from 261.8/262.2, rose against the Philippine peso at 7.74/7.77 from 7.76/7.78, and improved against the Singapore dollar to 3.3527/3623 from 3.3537/3578. However, it was slightly lower vis- -vis the Thai baht to 13.2810/3297 from 13.2547/2773.