Ringgit opens higher ahead of US Fed meeting

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar today despite the increasing risk-off mode, which has become prevalent ahead of the United States Federal Reserve (US Fed) meeting that begins today.

At 9 am, the local note climbed to 4.1885/1925 from 4.1905/1950 at Monday’s close.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the possibility of the tapering of asset purchases by the US Fed this week may also raise the appeal of the greenback and hence was likely to weaken the ringgit.

"At the same time, news on the potential defaults in one of the main property players in China has stoked concern over the financial stability in the second largest global economic powerhouse,” he told Bernama.

As such, he said the news would result forex players to seek refuge in the safe haven currencies, namely the US dollar.

At the opening, the ringgit was traded mixed against a basket of major currencies.

The ringgit appreciated versus the British pound to 5.7175/7236 from 5.7339/7400 at Monday’s close, and rose vis-a-vis the Singapore dollar to 3.0972/1007 from 3.0979/1017 yesterday.

However, the local note depreciated against the yen to 3.8226/8270 from 3.8200/8241 previously and fell to 4.9104/9157 versus the euro from 4.9079/9132. - Bernama
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