Ringgit Slightly Higher Against US Dollar as Election Results Fade

Initial Market Reaction Post-Election

KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Tuesday, recovering from a sharp dip earlier in the week. This movement follows a brief rally in the US dollar triggered by election results and market uncertainty. At 8:05 a.m., the ringgit stood at 4.4080/4200 against the US dollar, up slightly from Monday’s closing of 4.4090/4120.

Market Adjustments Following Election Rally

Stephen Innes of SPI Asset Management commented that the US dollar’s rally had been fueled by market speculation surrounding potential economic policies. However, with the election’s impact beginning to fade, the ringgit showed resilience as traders recalibrated their positions. Innes noted that the situation was less favorable for ASEAN’s export-driven economies.

US Dollar Volatility and ASEAN Outlook

He also pointed out that the dollar’s strength had been partly driven by rumors about the potential return of Robert Lighthizer as trade representative under a second Trump term. Despite Reuters dismissing these rumors, traders remained cautious, anticipating a potentially tougher trade policy that could affect Asian FX markets.