Bank Negara Malaysia's international reserves rose by US$600mil to US$103.3bil as at July 15, 2019 from two weeks prior.
KUALA LUMPUR: The ringgit opened higher against the US dollar today on renewed buying interest as demand for the greenback eased amid the lack of new catalysts, said a dealer.
At 9 am, the local unit improved to 4.1430/1460 against the greenback from 4.1460/1500 on Wednesday.
OANDA Head of Trading Asia-Pacific Stephen Innes said the steadier price of Brent crude of between US$70-US$80 per barrel also lifted the ringgit, as the Organisation of the Petroleum Exporting Countries (OPEC) tightly monitored supply to keep markets in the current spot.
On the local front, Innes said Bank Negara Malaysia (BNM) predictably left its Overnight Policy Rate unchanged at 3.25 per cent with a neutral policy statement on Wednesday.
“With so many political changes and internal policy adjustments, there was no need to add another level of complexity to the confusing landscape.
“We can expect BNM to remain on the sidelines for the foreseeable future and well into 2019, as the lack of inflation and sub-par gross domestic product (GDP) provides policy makers with no cause to move rates higher,” he said.
However, Innes noted that the next shift for BNM may be a rate cut towards the end of 2019, given the economic headwinds, due to a reduction in infrastructure spending and measures to reduce the burdening budget deficit.
“As such I am revising the year-end target for the ringgit to 4.20 against the US dollar on tepid growth outlook,” he said.
Meanwhile, the local note was lower against other major currencies.
It depreciated against the Singapore dollar to 3.0127/0151 from 3.0052/0094 on Wednesday and eased against the euro to 4.8241/8288 from 4.7986/8040.
The local note declined against the yen to 3.7237/7274 from 3.7154/7200 and fell against the British pound to 5.3532/3587 from 5.3031/3103. - Bernama
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