KUALA LUMPUR, JULY 21 — The ringgit opened flat against the US dollar but mostly higher against other major currencies on Tuesday, supported by strong Malaysian economic data, helping to mitigate the impact of increasing global market uncertainty.
On Monday, the Department of Statistics Malaysia (DOSM) announced that Malaysia’s exports increased by 45.4 percent to RM177.9 billion while imports grew by 43.9 percent to RM163.0 billion, thus boosting the trade surplus by 64.9 percent to RM14.9 billion during the period.
At 8am, the local unit was at 4.0895/0950 against the US dollar, as at yesterday’s close.
Managing Partner of SPI Asset Management, Stephen Innes, said the US dollar overall traded slightly stronger this morning as oil prices rose briefly following US President Donald Trump’s warning that Iran would “pay the consequences” for the deaths of American soldiers.
The situation was also influenced by the new threat from the Houthi group against Saudi ships passing through the Red Sea.
At the time of writing, Brent crude oil prices fell 0.12 percent to US$82.38 per barrel while West Texas Intermediate (WTI) crude oil fell 0.45 percent to US$88.82 per barrel.
Bank Muamalat Malaysia Bhd Chief Economist, Mohd Afzanizam Abdul Rashid, said the ringgit is expected to continue to trade in a narrow range against the US dollar, around 4.09 to 4.10.
“The US dollar index (DXY) remains high at 100.996 points as risk appetite among traders remains weak.
“The situation in West Asia continues to be the focus after the Iran-backed Houthi group in Yemen announced that it would impose a maritime blockade on Saudi Arabian ships passing through the Bab el-Mandeb Strait,” he told Bernama.
The ringgit also traded stronger against a basket of major currencies.
The local unit rose against the British pound to 5.4926/5000 from 5.5049/5123 at Monday’s close, strengthened against the euro to 4.6686/6749 from 4.6743/6806 and rose against the Japanese yen to 2.5169/5205 from 2.5177/5212.
The ringgit, however, traded mixed against most regional currencies.
The local unit rose against the Singapore dollar to 3.1675/1722 from 3.1677/1722 yesterday, strengthened against the Thai baht to 12.1512/1734 from 12.1556/1759, was unchanged against the Indonesian rupiah at 227.8/228.2 and was flat against the Philippine peso at 6.63/6.64.
— BERNAMA
