KUALA LUMPUR: The ringgit rose against the US dollar at the opening today in line with its regional peers due to positive sentiment arising from the upcoming meeting between US President Donald Trump and China President Xi Jinping.
At 9 am, the ringgit was at 4.1730/1760 against the greenback from 4.1800/1830 at Tuesday's close.
A dealer hoped that Trump-Xi meeting slated to be held during the G20 summit in Osaka, Japan end of this month, would provide the much-awaited solution to the escalating trade war involving the two economic superpowers.
"We hope a truce is achieved and the tension would de-escalate," he said.
The prevailing positive sentiment among investors has also pushed up oil prices.
As of 9am, benchmark Brent Crude was at US$62.49 per barrel compared with US$60.46 per barrel yesterday.
Besides the US-Sino trade war, reports of a possible interest rate cut by the US Federal Reserve and European Central Bank have also boosted investors sentiment for emerging markets.
At the opening, the ringgit was mixed against a basket of major currencies.
The local currency was lower at 5.2421/2476 compared with Tuesday's close of 5.2355/2409 but improved versus the euro to 4.6729/6780 from 4.6745/6795.
However, it eased against the Singapore dollar to 3.0518/0551 from 3.0471/0497 but fared better against the yen to 3.8436/8474 from 3.8596/8635 yesterday. - Bernama
Expectations for a US Federal Reserve rate cut are growing on the back of the ECB's signal for more monetary easing, says Ambank research.
"With the US Fed kicking off its two-day meeting starting today, expectations are growing for an interest rate cut in July is set at 60% by us while the market is looking at 85%. We are looking at a 90% chance for a rate cut in September.
"We expect the Fed Chair to be careful with his wording, but that the word "patient" — which he introduced at the beginning of the year to describe the central bank's approach to future policy decisions — will disappear," it said.
Ambank expects the ringgit to trade between its support level of 4.1730 and 4.1752 while its resistance is pinned at 4.1845 and 4.1889.