Ringgit opens lower against US$ in early trade

KUALA LUMPUR: The ringgit opened lower against the US dollar today as the greenback climbed after data showed that the US economy grew faster in the third quarter amid rising concerns for an early US interest rate cut, said an analyst.

At 9.15 am, the ringgit fell to 4.6525/6570 versus the greenback compared with Wednesday's close of 4.6495/6550.

It was reported that the country's gross domestic product (GDP) grew at an annualised pace of 5.2 per cent in the third quarter, up from its initial estimate of 4.9 percent.

However, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said sharper decline in the short-dated US Treasury yield suggests anticipation for an interest rate cut in 2024 has gathered momentum.

"All this should bode well for the ringgit, especially when the prevailing ringgit against the US dollar level has pierced the previous support level of RM4.6611.

"The next support level is located at RM4.5778," he told Bernama, adding that the Federal Reserve’s (Fed) officials statement suggested that the Fed Fund Rate at 5.50 per cent has reached its peak level.

In early trade, the ringgit was traded lower versus a basket of major currencies.

It depreciated vis-a-vis the euro at 5.1080/1129 from 5.1014/1075 on Wednesday’s close, was down against the British pound at 5.9068/9125 from 5.8951/9021 and declined against the Japanese yen to 3.1641/1676 from 3.1513/1553 previously.

The local note was traded mixed against other Asean currencies.

It inched up vis-a-vis the Thai baht to 13.3439/3630 from 13.3484/3722 and appreciated versus the Philippines peso to 8.38/8.40 from 8.39/8.41 at yesterday's close.

However, the ringgit was marginally lower versus the Singapore dollar at 3.4923/4962 from 3.4909/4953 and edged down against the Indonesian rupiah to 302.1/302.6 from 301.9/302.5 previously. - Bernama

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