Ringgit gains as US dollar weakens amid fiscal concerns
At 8 am, the local currency traded at 4.1870/2065 against the US dollar, up from Tuesday's close of 4.1995/2005. The US Dollar Index (DXY) also declined further, easing to 96.819.
Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the dollar's softness reflects concerns over US fiscal policy, including potential tariff measures and planned government spending cuts.
'Tax reductions and potential cuts in social spending could undermine US growth prospects,' he told Bernama.
The ringgit also gained against other major currencies. It strengthened against the Japanese yen to 2.9186/9324 from 2.9351/9389, rose versus the British pound to 5.7555/7823 from 5.7797/7866, and appreciated against the euro to 4.9423/9654 from 4.9566/9625.
Among ASEAN currencies, the ringgit saw marginal gains against the Indonesian rupiah at 258.4/259.7 from 258.9/259.4 and improved against the Philippine peso to 7.43/7.47 from 7.45/7.46. It also firmed against the Singapore dollar to 3.2899/3057 from 3.3015/3059 and strengthened versus the Thai baht to 12.8930/9630 from 12.9363/9585.
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