Ringgit Shows Mild Recovery
KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Tuesday as the dollar’s recent surge following election results showed signs of fading. At 8:05 a.m., the ringgit stood at 4.4080/4200, compared to the previous day’s close of 4.4090/4120.
Market Readjustments After Election-Driven Rally
SPI Asset Management’s Stephen Innes noted that the dollar’s recent strength had been driven by market speculation regarding potential tariffs and trade policies under a second Trump term. This uncertainty was seen as unfavorable for ASEAN’s export-driven economies, but the ringgit’s slight recovery suggested that traders were adjusting to the new market conditions.
Impact of Trade Speculations on FX Markets
Innes added that the dollar’s strength had been fueled by rumors regarding the potential return of Robert Lighthizer as trade representative. While Reuters quickly dismissed these rumors, market participants remained on edge, anticipating that Lighthizer’s possible return could increase volatility in the Asian FX markets.