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THE ringgit opened nearly unchanged against the US dollar this morning, as cautious market sentiment over the economic outlook continued to prompt investors to seek safer assets.
At 8 am, the ringgit stood at 4.4310/4440 against the greenback, slightly weaker than Thursday's close of 4.4310/4375.
Bank Muamalat Malaysia Bhd Chief Economist Dr. Mohd Afzanizam Abdul Rashid attributed the subdued performance of the ringgit to a prevailing risk-off sentiment, as US equities extended their losses.
"Risk-off sentiment remains dominant, with benchmark indices falling over one percent, while US Treasury bond prices have risen, indicating that traders are turning to safe-haven assets in light of the growing uncertainties, including those arising from the ongoing trade war," he told Bernama.
The US Dollar Index (DXY) strengthened by 0.22% to 103.841, driven by heightened uncertainty over global growth prospects for the year.
In addition, Mohd Afzanizam noted that the US Producer Price Index (PPI) had come in lower than expected, registering a 3.2% increase, compared to the anticipated 3.3%. This development, he said, could pave the way for a more dovish stance from the US Federal Reserve when its Federal Open Market Committee meets next week on March 19.
"As a result, the ringgit may remain weak in the short term as investors gravitate towards the US dollar, considered a safe-haven currency," he explained.
"The potential for monetary easing by the Fed, combined with growing concerns over a US recession, could continue to foster cautious market sentiment, which is likely to be positive for the dollar in the near term."
On a broader scale, the ringgit saw mixed movements against other major currencies. It strengthened against the euro, trading at 4.8094/8235, up from 4.8205/8276 at Thursday’s close.
It also appreciated against the British pound, rising to 5.7399/7568 from 5.7426/7510. However, the ringgit weakened against the Japanese yen, sliding to 2.9949/3.0041 from 2.9909/9953.
Against its ASEAN counterparts, the ringgit showed mixed results. It gained slightly against the Singapore dollar, moving to 3.3169/3271 from 3.3198/3250, but slipped against the Thai baht, weakening to 13.1495/1944 from 13.1199/1443.
The ringgit also edged lower against the Indonesian rupiah to 269.7/270.6 from 269.7/270.2 and remained mostly unchanged against the Philippine peso, holding steady at 7.72/7.75 from 7.72/7.74. – March 14, 2025