KUALA LUMPUR, Jan 10 — The ringgit was slightly up against the US dollar in early trade in the scenario of a hawkish US Federal Reserve (Fed) tone and positive economic data, said an analyst.

At 8.02 am, the ringgit traded at 4.5000/5100 against the greenback from 4.5005/5055 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) continued to be high, around 109 points in the past three days as market sentiments were bullish on the US dollar.

"The DXY has been relentlessly on the uptrend since September last year, right after the Fed delivered the anticipated rate cuts on Sept 17-18.

"While the Fed might reduce the rate again this year, the smaller quantum of interest rate cut would mean that the Fed is keen to keep its monetary policy stance restrictive,” he told Bernama.

It would shape market sentiments in the near term; hence Mohd Afzanizam expects the ringgit to oscillate around RM4.50 in light of the positive view on the US dollar.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan was of the view that the strong US dollar performance is temporary for Malaysia, given the country’s solid macroeconomic fundamentals.

"The rising foreign direct investments (FDIs) and robust infrastructure development continue to underpin economic resilience in Malaysia,” he said.

Additionally, he noted that indicators such as Brent crude oil prices, which have increased from approximately US$74 per barrel at the end of 2024 to nearly US$77 per barrel as of yesterday, are likely to provide further support to the ringgit.

Meanwhile, the ringgit opened mostly higher against a basket of major currencies.

The local note inched up against the Japanese yen to 2.8463/8528 from 2.8466/8500 and rose vis-a-vis the euro to 4.6332/6435 from 4.6382/6434 at the yesterday’s close.

However, it fell against the British pound to 5.5359/5482 from Thursday’s close of 5.5271/5332.

The local note traded mixed against Asean currencies.

It declined against the Thai baht to 13.0208/0592 from 12.9937/13.0142 at the previous close and was lower vis-a-vis the Singapore dollar to 3.2880/2956 from 3.2865/2906.

The ringgit was flat against the Philippine peso at 7.69/7.71 and also flattish against the Indonesian rupiah at 277.4/278.2 from 277.4/277.9 previously. — Bernama