KUALA LUMPUR, El Sky News – The Malaysian ringgit opened slightly higher against the US dollar on Tuesday morning, as investors reassessed the geopolitical situation between the United States and Venezuela. The local currency’s gains come as global demand for safe-haven assets began to ease.
As of 8:00 AM, the ringgit climbed to 4.0650/0745 against the greenback, improving from Monday’s closing rate of 4.0695/0745.
Market Dynamics and Investor Sentiment
Mohd Sedek Jantan, Head of Investment and Economic Strategy at IPPFA Sdn Bhd, noted that capital flows are shifting back toward emerging market currencies and higher-yield assets as risk sentiment stabilizes.
“While the US dollar initially found support from geopolitical tensions and global central bank signals, that momentum faded overnight. The US Dollar Index (DXY) slipped 0.17 percent to 98.26 in late trading, resulting in only marginal gains for the greenback so far,” he explained to Bernama.
The ringgit’s performance was further bolstered by a recovery in the Asia Dollar Index, reflecting a renewed investor appetite for regional currencies as risk tolerance improves.
Performance Against Other Major Currencies
Despite its strength against the US dollar, the ringgit showed mixed results against other major and regional currencies:
- Weakened against the Japanese yen (2.5958/6020), the British pound (5.5012/5140), and the Euro (4.7626/7737).
- Strengthened against most ASEAN counterparts, including the Indonesian rupiah, Thai baht, and Philippine peso.
- Declined slightly against the Singapore dollar, trading at 3.1686/1763.
Background
The current market fluctuations are largely driven by the cooling of immediate geopolitical fears, allowing emerging markets like Malaysia to recover some ground. Analysts suggest that as long as geopolitical risks remain manageable, the ringgit may continue to benefit from the stabilization of global risk appetites.
