Ringgit Maintains Upward Momentum Against US Dollar Amid Federal Reserve Concerns

KUALA LUMPUR, El Sky News – The Malaysian Ringgit continued its strengthening trend against the US Dollar during Tuesday’s early trading session. This positive movement comes as market participants express growing concerns over the independence of the US Federal Reserve (Fed) following recent political pressures regarding its monetary policy stance.

Market Performance and Exchange Rates

As of 8:00 AM, the local currency appreciated to 4.0580/0685 against the greenback, up from Monday’s closing rate of 4.0605/0660. The US Dollar Index (DXY) saw a decline of 0.24%, falling to 98.894 points, which directly contributed to the Ringgit’s gains.

Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, noted that the ongoing friction between the White House and the Federal Reserve has significantly impacted investor sentiment. The tension stems largely from the Trump administration’s criticism of the central bank’s reluctance to ease monetary policy.

Impact of Political Pressure on Currency

According to Dr. Afzanizam, these external political factors have undermined the perceived stability of the US Dollar. “The continuous attacks by President Donald Trump’s administration on the Fed have clouded the judgment of traders and investors regarding the dollar’s future direction,” he told Bernama. In the short term, this instability is expected to benefit the Ringgit, with a projected trading range of RM4.05 to RM4.06 for the day.

Comparison with Other Major Currencies

The Ringgit also showed resilience and growth against several other major and regional currencies:

• Japanese Yen: Improved to 2.5677/5747 from 2.5717/5754.
• Euro: Strengthened slightly to 4.7345/7467 from 4.7435/7499.
• Singapore Dollar: Rose to 3.1558/1644 from 3.1567/1613.
• Indonesian Rupiah: Increased to 240.7/241.4 compared to the previous 240.9/241.3.

However, the local unit saw a marginal decline against the British Pound, trading at 5.4641/4782, and remained flat against the Philippine Peso.

Economic Outlook

This steady performance highlights the Ringgit’s ability to capitalize on the current volatility of the US Dollar. As the market monitors the developing situation between the US administration and its central bank, the Ringgit remains a beneficiary of the shifting global economic landscape.