Ringgit Firmer Against US Dollar In Early Trade

By Siti Radziah Hamzah

KUALA LUMPUR, July 23 (Bernama) -- The ringgit edged higher against the US dollar in early trade, driven by cautious market sentiment ahead of the Aug 1 tariff deadline.

At 8.03 am, the ringgit rose to 4.2195/2375 against the greenback, compared with Tuesday’s close of 4.2300/2370.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade within the RM4.22 to RM4.24 range today, as investors remain guarded over the tariff outlook.

Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit is opening stronger today as macro crosswinds begin to tilt in its favour, offering a reprieve after weeks of tariff tension and global uncertainty.

He said the US dollar was stumbling, weighed down by falling Treasury yields and growing concerns over domestic fallout from Donald Trump’s hardline trade stance.

He added that the ringgit’s strength this morning is not just a fluke bounce but a measured response to a shifting macro narrative.

“A softer dollar, revived trade diplomacy, hope for tariff relief, and a US Federal Reserve under fire have combined to open a temporary window for emerging market currencies. For the ringgit, that window is letting in a welcome breeze,” he told Bernama.

Innes said crucially for the ringgit, there is still hope that Malaysia could strike its own deal with Washington to avoid the full weight of the upcoming tariff hike.

He noted that Malaysian negotiators were said to be pushing for a lower tariff, targeting a range of 15–20 per cent compared with the proposed 25 per cent, broadly in line with what has been offered to regional peers such as Vietnam and Indonesia.

“The fact that talks are ongoing is enough to support the ringgit, as markets see it as a sign that Malaysia may avoid the harshest penalties,” Innes said.

At the opening, the ringgit was mostly weaker against a basket of major currencies.

It slipped against the Japanese yen to 2.8767/8891 from 2.8690/8739, and eased versus the euro to 4.9528/9740 from 4.9512/9594. However, the ringgit was slightly higher against the British pound, rising to 5.7052/7295 from 5.7088/7183 at Tuesday’s close.

The local note was mostly firmer against regional peers.

It rose vis-à-vis the Singapore dollar to 3.3001/3144 from 3.3011/3071, and appreciated against the Indonesian rupiah to 258.5/259.7 from 259.1/259.7. It also inched higher against the Philippine peso to 7.39/7.43 from 7.41/7.43.

However, the ringgit fell against the Thai baht to 13.1138/1767 from 13.0899/1172.

-- BERNAMA