KUALA LUMPUR: The ringgit continued its upward momentum to open higher against the US dollar today, driven by investors’ shift towards emerging currencies including the ringgit due to persistent doubts over the global economic outlook, said a dealer.
At 9.15 am, the local note stood at 4.1090/1120 versus the greenback compared with yesterday’s close of 4.1140/1170.
He said that investors remained on the sidelines, awaiting a clearer signal from the US Federal Reserve on possible US interest rate cuts as well as the release of US inflation data later today.
The local note also traded higher against a basket of major currencies.
It rose against the pound to 5.1494/1548 from 5.1565/1619 on Friday and strengthened versus the Singapore dollar to 3.0251/0278 from 3.0339/0373.
The ringgit also appreciated against the euro to 4.6267/6305 from 4.6348/6390 and went up against the Japanese yen to 3.7895/7934 from 3.8029/8060 previously. - Bernama
Ambank research believes the latest US inflation data would be unlikely to change the Federal Reserve's expectation for a rate cut later this month.
"We feel the bounce in June’s core-inflation was due to volatile items like vehicles and apparel, both were in the negative region for the last few months.
"June’s rebound was due to previous weakness than to a change of the trend," it said.
It added that it has a 60% chance of a 50bps cut at the Fed's July FOMC meeting while full factoring in a 25bps cut.
The research house forecasts the ringgit to trade between a support level of 4.0939 and 4.1039 while resistance is pinned at 4.1277 and 4.1335.