Kuala lumpur: The ringgit closed higher against the US dollar as market sentiment improved amid concerns over the United States' tariffs against the European Union (EU) and geopolitical risks, while pressures in the Japanese Government Bond (JGB) market eased. At 6 pm, the local currency rose to 4.0445/0495 against the greenback from 4.0530/0580 at Tuesday's close.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the local note was supported against the US dollar, appreciating by 0.14 percent towards the end of the day. He explained that 'risk-off sentiments are prevalent with the US Dollar Index (DXY) falling by 0.04 percent to 98.59 points while spot gold prices increased 1.99 percent to US$4,858.11 per ounce.' Mohd Afzanizam added that the ringgit has managed to withstand market volatility well due to resilient macroeconomic data in the Malaysian economy, which supports the case for maintaining the overnight policy rate (OPR).
Additionally, SPI Asset Management managing partner Stephen Innes commented on the significant sell-off in the JGB market, which had global repercussions by pushing bond yields higher and reducing demand for risk-sensitive assets. Innes noted that while currencies like the ringgit are not weakening outright, their upward momentum has stalled due to softened global bond demand and increased investor caution.
Furthermore, the ringgit ended firmer against other major currencies. It appreciated against the Japanese yen to 2.5598/5631 from 2.5696/5729 on Tuesday, gained against the British pound to 5.4237/4304 from 5.4618/4686 previously, and strengthened against the euro to 4.7337/7395 from 4.7530/7588 yesterday.
The local note also traded mostly higher against ASEAN currencies. It rose against the Singapore dollar to 3.1502/1543 from 3.1602/1646 on Tuesday, increased against the Thai baht to 13.0086/0301 from 13.0397/0629, and was firmer against the Indonesian rupiah at 238.7/239.3 from 239.0/239.4 previously. However, it eased against the Philippines' peso to 6.82/6.83 from 6.81/6.83 yesterday.