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THE ringgit opened marginally higher against the US dollar in early trade on Monday amid cautious sentiment, as traders awaited clarity on a possible extension of the trade truce between the United States (US) and China, said an analyst.

At 8 am, the local note stood at 4.2110/2310 versus the greenback, compared with Friday’s close of 4.2195/2245.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that earlier, the US and the European Union (EU) had agreed to a 15 per cent tariff on most EU imports, while most US imports would face zero tariff under the deal.

He said markets are also closely watching the upcoming US Federal Open Market Committee (FOMC) meeting scheduled for July 29 and 30, with consensus expecting no change to the Federal Funds Rate, currently at 4.25 per cent to 4.50 per cent.

“Based on recent developments, most countries appear accommodative in offering favourable terms to the US. It remains to be seen whether this will effectively narrow the trade balance in the near term.

“However, the cost of doing business in the US is likely to rise, and it also appears the US may be relying on a weaker dollar to boost export competitiveness.

“Against this backdrop, we expect the ringgit to remain within a narrow range of RM4.22 to RM4.23 versus the US dollar,” Mohd Afzanizam told Bernama.

At opening here, the ringgit traded mostly higher against a basket of major currencies.

It rose against the Japanese yen to 2.8499/2863 from 2.8529/8565 at Friday’s close, and strengthened versus the British pound to 5.6600/6869 from 5.6786/6853. However, it eased slightly against the euro to 4.9521/9757 from 4.9507/9566.

Against regional peers, the ringgit was also firmer.

It advanced against the Indonesian rupiah to 258.0/259.3 from 258.5/258.9 on Friday, and gained versus the Singapore dollar at 3.2878/3039 from 3.2937/2978.

The local note also strengthened against the Thai baht to 12.9809/13.0546 from 13.0268/0478, and edged up against the Philippine peso to 7.37/7.41 from 7.38/7.40 previously. — BERNAMA

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RANAU — The Ministry of Domestic Trade and Cost of Living (KPDN) will collaborate with the Ministry of Finance (MOF) to expand access to essential items for recipients of the Sumbangan Asas Rahmah (SARA) aid.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali (picture) said KPDN had proposed that recipients be allowed to use their SARA aid at mobile Jualan Rahmah MADANI Programme (PJRM) locations, in addition to existing participating retailers.

He said, at present, recipients of the Sumbangan Asas Rahmah (SARA) aid could only purchase basic items at 4,152 participating supermarkets and retail outlets across the country, including 470 in Sabah.

“This initiative enables SARA recipients, particularly in rural and interior areas, to use the aid credited to their MyKad to make purchases at mobile PJRM locations,” he told reporters after launching the Sabah Zone KPDN Carnival 2025 here tonight.

Armizan said the additional RM300 million allocation for PJRM would enable KPDN to increase its frequency nationwide, with a target of 20,000 series throughout this year.

“For Sabah, KPDN is targeting 2,276 PJRM series throughout this year, and as of July 26, a total of 1,089 have already been implemented. We will adopt several approaches to ensure the target is achieved by year-end,” he said.

He said the approaches included increasing the range of items offered and enhancing cooperation with strategic retail partners.

“Through these improvements, the people will have more choices. The ministry can no longer act alone as it did in the past. For example, today’s PJRM is carried out in collaboration with retail partners,” he explained.

Commenting on today’s programme, this was the second year KPDN had implemented the programme, adding that six carnival tours would be held across the country this year.

“The carnival in Ranau, held in conjunction with the Buy Malaysian Goods Campaign (KBBM), is the second in the series this year, and we expect around 60,000 visitors throughout the three-day event,” he said.

Armizan said that the main goal of the initiative was to bring government services, particularly those under KPDN, closer to the people, especially at the grassroots level.

“The KPDN Carnival 2025 also serves as a catalyst in empowering KBBM through the theme ‘Jom Beli Lokal’ as part of ongoing efforts to support local products and strengthen the domestic economy. It is also a strategic move to boost domestic economic growth while helping local entrepreneurs and micro, small and medium enterprises expand their market reach.

“At the same time, this initiative provides a platform to showcase the quality of local products, which can become the preferred choice and ultimately reduce reliance on imported goods,” he said. –BERNAMA

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KUALA LUMPUR — The ringgit is expected to hover between RM4.22 and RM4.24 next week as the US Federal Reserve (Fed) is anticipated to maintain its policy rate, said an analyst.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said this outlook is tied to the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for July 29–30, 2025.

“Based on the interest rate futures market, the Fed is likely to keep the Federal Funds Rate steady at 4.50 per cent. Technical indicators suggest that the US dollar-ringgit exchange rate is currently in a neutral zone,” he told Bernama.

Meanwhile, SPI Asset Management managing partner Stephen Innes expects the ringgit to trade within a relatively narrow range of 4.2080–4.2280, with trade-related headlines and external sentiment continuing to drive short-term direction.

On a Friday-to-Friday basis, the ringgit ended the week better against the greenback, closing at 4.2195/2245 versus 4.2410/2455 previously.

However, the local note traded lower against a basket of major currencies.

The ringgit depreciated vis-à-vis the Japanese yen to 2.8529/8565 from 2.8517/8549 and declined versus the euro to 4.9507/9566 from 4.9336/9388 at the end of last week.

However, it gained against the British pound to 5.6786/6853 from 5.6999/7060  last Friday.

Against ASEAN currencies, the ringgit trended higher. 

The local note firmed against the Singapore dollar to 3.2937/2978 from 3.3027/3065, strengthened versus the Thai baht to 13.0268/0478 from 13.3027/3065, rose versus the Indonesian rupiah to 258.5/258.9 from 260.2/260.6 previously, and improved against the Philippine peso to 7.38/7.40 from 7.41/7.43 last Friday. — BERNAMA

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THE ringgit opened on a slightly firmer footing against the US dollar this morning, shrugging off the broader G10 currencies’ weakness as a confluence of domestic optimism and regional tailwinds lifted sentiment, said an analyst.

At 8.07 am, the local note rose to 4.2120/2225 against the greenback from Thursday’s close of 4.2135/2210

SPI Asset Management managing partner Stephen Innes said while better-than-expected United States (US) data and rising Treasury yields have weighed on most major currencies, the ringgit is drawing strength from positive developments closer to home.

“There is growing confidence that Malaysia could soon secure a trade deal with the US, potentially modelled off the 15 per cent tariff truce the US struck with Japan.

“That alone has markets pricing in a more favourable export outlook, particularly for Malaysia’s high-value sectors,” Innes told Bernama.

On Thursday, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said Malaysia is still on track to secure a trade deal with the US by the Aug 1 deadline at the lowest possible tariff.

Innes said investor sentiment was also buoyed by anticipation surrounding next week’s high-level talks in Stockholm, between the US Secretary of Treasury Scott Bessent and senior Chinese officials.

He noted that the markets see this as a potential catalyst for de-escalation in broader US-China tensions, which historically boosts risk appetite across Asia, including for the ringgit.

“The multiplier effect from Malaysia’s recent fiscal stimulus, most notably the RM100 cash handout and fuel subsidy plan, is adding a layer of domestic support.

“These measures are expected to cycle quickly through the economy, bolstering consumption and investor confidence in the near term.

“Altogether, these factors are helping the ringgit defy the gravitational pull of a stronger US dollar and rally into the session with solid momentum,” said Innes. 

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects the ringgit to trade within the RM4.21-RM4.23 range against the US dollar today, as he anticipates profit-taking activities in light of strong gains this week.

At the opening, the ringgit was higher against a basket of major currencies.

It advanced against the Japanese yen to 2.8606/8680 from 2.8751/8804 at the close on Thursday, appreciated against the British pound at 5.6883/7025 from 5.7080/7182 yesterday and rose against the euro to 4.9491/9614 from 4.9517/9605 previously.

The local note was also mostly higher against regional peers.

It rose vis-à-vis the Singapore dollar to 3.2958/3045 from 3.2995/3057 on Thursday and inched up against the Indonesian rupiah to 258.4/259.2 from 258.5/259.1 yesterday.

The ringgit also strengthened against the Thai baht to 13.0459/0857 from 13.0570/0863 on Thursday and was flat against the Philippine peso, remaining at 7.43/7.45 since yesterday. — BERNAMA

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