Ringgit easier against US dollar but higher versus other major currencies in early trade

KUALA LUMPUR: The ringgit was lower against the US dollar but rose versus other major currencies in early trade as investors are monitoring Bank Negara Malaysia’s (BNM) Monetary Policy Committee Meeting and the US Federal Reserve’s (Fed) move on interest rates, said an analyst.

At 8.16 am, the local currency eased to 4.3200/3380 versus the greenback from last Friday’s close of 4.3185/3225.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit should stay positive today as the Fed is on track to reduce its interest rates this month.

"Meanwhile, the BNM is likely to keep the Overnight Policy Rate (OPR) steady throughout the year.

"This would make the ringgit look very appealing from the foreign investors’ point of view,” he told Bernama.

Hence, Mohd Afzanizam said the ringgit versus US dollar may make an attempt to break the immediate support level of 4.3050.

The ringgit traded higher against a basket of major currencies this morning.

The local currency rose versus the Japanese yen to 2.9518/9645 from 2.9754/9784 last week, was firmer vis-a-vis the euro to 4.7723/7922 from 4.7862/7906 and strengthened against the British pound to 5.6713/6949 from 5.6939/6992 previously.

However, the ringgit traded mixed against ASEAN currencies.

The local note improved against the Singapore dollar to 3.3083/3224 from 3.3158/3191 and appreciated vis-a-vis the Thai baht to 12.6798/7375 from 12.7540/7726 previously.

It was little changed versus the Indonesian rupiah and Philippine peso to 279.4/280.8 from 279.3/279.8 and 7.69/7.73 from 7.69/7.70, respectively. - Bernama