Ringgit Shows Minor Gains as US Dollar Slips After Election Rally

Ringgit’s Minor Recovery After Election Surge

KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Tuesday, buoyed by a brief retreat in the dollar’s strength after an election-driven surge, analysts observed. The ringgit’s minor recovery was due to market corrections as traders recalibrated their positions following recent currency fluctuations.

Innes Analyzes US Dollar’s Strength and Market Reactions

At 8:05 a.m., the ringgit was at 4.4080/4200 against the US dollar, compared to Monday’s closing of 4.4090/4120. According to SPI Asset Management’s Stephen Innes, the US dollar’s strength had been reinforced by market speculation regarding the possible return of tariffs. This situation is typically unfavorable for ASEAN’s export-driven economies.

Impact of Potential Trade Policy Changes

Innes also mentioned that the dollar’s rally was partly due to rumors regarding the return of Robert Lighthizer as trade representative under a second Trump administration. While these rumors were quickly dismissed, FX traders remained alert, fearing that a return to a more aggressive trade stance could spark further volatility in the Asian FX markets.