By Harizah Hanim Mohamed
KUALA LUMPUR, April 22 (Bernama) -- The ringgit extended its gains against the US dollar at the opening on Tuesday, with the local note poised to test its immediate support level at RM4.36.
At 8 am, the local currency strengthened to 4.3550/3840 against the greenback, from Monday’s close of 4.3670/3735.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said financial markets appeared to be growing more agitated amid President Trump’s persistent moves to undermine the US Federal Reserve’s independence in conducting monetary policy.
“US equities took a plunge again as the US President continued his assault on the Fed Chair, claiming there is no inflation and that therefore the Fed Funds Rate should be lowered. The 10-year US Treasury yield rose by about nine basis points to 4.41 per cent, while the two-year note yielded lower by three basis points to 3.76 per cent,” he told Bernama.
Mohd Afzanizam noted that the US Dollar Index (DXY) fell by close to one per cent to reach 98.278 points.
“While there could be views that the Fed is always late in the game, there should not be any attempt to compromise its independent judgement. This is an extraordinary situation which exacerbates the already gloomy outlook due to the tariff measures,” he added.
Meanwhile, the ringgit strengthened against a basket of major currencies.
It rose against the Japanese yen to 3.0913/1121 from 3.1046/1095 at Monday’s close, improved against the euro to 5.0139/0473 from 5.0408/0483, and advanced against the British pound to 5.8266/8654 compared with 5.8513/8601.
The local note also performed mostly higher against ASEAN currencies.
It firmed against the Singapore dollar to 3.3372/3599 from 3.3515/3570, gained against the Philippine peso to 7.69/7.74 from 7.71/7.73, and rose against the Thai baht to 13.1187/2184 from 13.1914/2170.
However, the ringgit was nearly flat against the Indonesian rupiah at 259.1/260.9, compared with 259.8/260.3 previously.
-- BERNAMA
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