Ringgit opens higher against softer US$

KUALA LUMPUR: The ringgit opened higher today, bolstered by a softer US dollar as markets in the United States (US) were closed on Monday for Memorial Day, said an analyst.

At 9 am, the ringgit strengthened to 4.6900/6950 against the greenback, up from Monday’s close of 4.6940/6990.

Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, remarked that in the absence of major economic data, the ringgit is likely to remain cautious.

He said that market sentiment will start to be influenced by the US market as the US Federal Reserve's (Fed) inflation gauge and the Personal Consumption Expenditures (PCE) price index are unveiled.

"Several Fed officials will be sharing their thoughts on the state of the economy, likely reiterating the need to maintain restrictive monetary policy to bring inflation towards their two per cent goal,” he told Bernama.

At the opening, the ringgit traded mostly firmer against a basket of major currencies.

The local unit appreciated against the Japanese yen to 2.9888/9924 from Monday’s 2.9919/9953, and edged up against the euro to 5.0952/1006 from 5.1005/1059.

However, it marginally eased against the British pound to 5.9891/9955 from 5.9881/9945 yesterday.

The local currency also traded higher against its ASEAN peers.

The ringgit strengthened against the Singapore dollar to 3.4769/4809 from 3.4799/4838 at Monday’s close and firmed up against the Thai baht to 12.8100/8282 from 12.8132/8321.

The local note rose against the Indonesian rupiah to 291.7/292.3 from 292.0/292.5 yesterday and slightly improved against the Philippine peso to 8.07/8.09 from 8.08/8.09. - Bernama