KUALA LUMPUR: The ringgit was slightly higher against the US dollar at today’s opening with investors remaining cautious ahead of the United States (US) monetary policy outcome due later tonight, an analyst said.
At 8 am, the local note was at 4.2360/2565 against the greenback from yesterday’s close of 4.2390/2475.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors will stay vigilant and watchful ahead of the Federal Open Market Committee (FOMC) meeting outcome.
He noted that the escalating geopolitical tension in the Middle East may influence FOMC’s rate cut decision amid the uncertain global economic environment.
"It appears that the rate cut chatter has been challenged by the latest development in the Middle East, where risks of a higher inflation rate would lead the Federal Reserve to be more cautious in delivering further reduction in the Fed Fund Rate this year," he told Bernama.
At the opening, the ringgit traded higher against a basket of major currencies.
It rose versus the Japanese yen to 2.9133/9276 from 2.9271/9332 at Tuesday’s close, strengthened against the British pound to 5.6885/7161 from 5.7413/7528, and increased vis-à-vis the euro to 4.8638/8873 from 4.8986/9084 previously.
Similarly, the ringgit was also firmer against its ASEAN counterparts.
It rose vis-à-vis the Indonesian rupiah to 260.0/261.4 from yesterday's 260.2/260.8 and moved up to 7.47/7.51 against the Philippine peso from 7.48/7.49 previously.
The local note also inched up against the Singapore dollar to 3.2924/3088 from 3.3068/3137 at yesterday’s close, but fell versus the Thai baht to 12.9875/13.0592 from 13.0114/0443. - Bernama
