Mild Recovery After Election-Driven Fluctuations

KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Tuesday, buoyed by a minor pullback in the dollar after its strong surge following the election results. The ringgit stood at 4.4080/4200 at 8:05 a.m., compared to Monday’s closing of 4.4090/4120.

Innes Discusses Market Conditions Post-Election

Stephen Innes, managing partner at SPI Asset Management, highlighted that the US dollar’s rally had been prompted by speculations surrounding future economic policies. However, the market’s focus shifted as the initial euphoria faded, leading to the ringgit’s recovery. He noted that a potential return of tariffs could be detrimental to ASEAN’s economies, which depend heavily on exports.

The Return of Lighthizer and its Market Implications

Innes also commented on the speculation about Robert Lighthizer’s potential return to the role of trade representative under a second Trump term. Though these rumors were swiftly debunked by Reuters, the market remained cautious, as Lighthizer’s return could signal a tougher trade policy, potentially leading to greater volatility in the FX markets.