Ringgit opens flat vs dollar, stronger against other currencies

KUALA LUMPUR: The ringgit opened almost flat against the US dollar in early trade today but was higher against other major currencies as market participants remain cautious about global monetary policy tightening measures.

At 9 am, the local note decreased to 4.5060/5125 against the greenback compared with 4.5050/5090 at Monday’s close.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the spotlight today will be on the Reserve Bank of Australia's decision regarding the benchmark interest rate.

"The market anticipates a 25 basis point increase in the cash rate, which presently stands at 4.10 per cent. Although Australia's inflation rate has decreased to 6.0 per cent in the second quarter of 2023 from 7.0 per cent previously, it remains higher than the target.

"The USD/MYR exchange rate may stabilise at its current level of 4.50,” he told Bernama.

He said that presently, the support and resistance levels are situated at RM4.4872 and RM4.5491 respectively.

In the meantime, the ringgit traded higher against a basket of major currencies.

It increased against the Japanese yen to 3.1619/1667 from 3.1658/1689 on Monday, firmed versus the euro to 4.9516/9588 from 4.9690/9734 and improved vis-a-vis the British pound to 5.7807/7891 from 5.7916/7968 previously.

At the same time, the local unit traded mixed against other Asean currencies.

The ringgit rose versus the Singapore dollar to 3.3875/3926 from 3.3877/3910 at the close on Monday and went up vis-a-vis the Thai baht at 13.1485/1752 from 13.1594/1765 previously.

However, the ringgit was lower versus the Philippine peso to 8.21/8.23 from 8.20/8.22 previously and the Indonesian rupiah to 298.7/299.3 from 298.6/299.1 at yesterday’s close. - Bernama