Kuala Lumpur: The ringgit rebounded against the US dollar today, closing at its highest level in over five months, driven by renewed interest following optimistic tariff talks between Malaysia and the US government. At the end of trading, the local currency was recorded at 4.3615/3665 against the greenback, an improvement from Friday's close of 4.3705/3770.
According to BERNAMA News Agency, SPI Asset Management managing director Stephen Innes highlighted that the ringgit's boost was largely due to growing optimism stemming from the positive start to the US-Malaysia trade discussions. "The Malaysian currency is gaining support after reports that the US-Malaysia trade talks have 'started well enough', and this development has put market perception in a very favourable light, boosting sentiment towards the ringgit today," he explained.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid expressed confidence that the ringgit is likely to continue its upward trend. He attributed this to the positive developments in the tariff negotiations. He also pointed to the special parliamentary session scheduled for May 5, set to address tariff-related issues, as evidence of the Malaysian government's proactive approach to managing current economic challenges. "This, perhaps, has contributed positively to confidence building, although the degree of uncertainty remains fairly visible," he added.
At the close of trading, the ringgit showed strength against a basket of major currencies. It appreciated against the Japanese yen, rising to 3.0406/0443 from 3.0431/0481, and strengthened against the euro, moving to 4.9507/9564 from 4.9596/9670. However, it saw a slight dip against the British pound, closing at 5.8195/8262 compared to 5.8128/8214 previously.
In the regional market, the ringgit also performed well against its ASEAN counterparts. It gained ground against the Singapore dollar, closing at 3.3198/3238 from 3.3228/3280, and strengthened against the Thai baht, ending at 12.9517/9743 from 13.0195/0450. The local currency also rose against the Philippine peso to 7.73/7.74 from 7.77/7.78 and appreciated against the Indonesian rupiah to 258.7/259.1 from 259.6/260.2.