KUALA LUMPUR: The ringgit inched higher at the opening today amid ongoing geopolitical worries and despite a firmer greenback after the US Federal Reserve (Fed) decided to keep interest rates unchanged, an analyst said.
At 8 am, the local note climbed to 4.2435/2650 against the greenback from yesterday’s close of 4.2500/2550.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar was mostly higher overnight after the US Federal Open Market Committee (FOMC) unanimously decided to keep the Fed funds rate unchanged at 4.25 to 4.50 per cent.
"The Fed is concerned over the risk of higher inflation and they need to stay vigilant while the Middle East conflict remains unsettled as the possibility of the United States participating in the Israel-Iran military conflict remains high," he told Bernama.
He said the ringgit had depreciated against the US dollar on Thursday by 0.22 per cent following a greenback rally, and that investors were also wary of the next hurdle, which would be the end of the 90-day tariff pause period in early July. "On that note, we shall expect the ringgit to stay soft in the near term as sentiments in the market remain guarded," he added.
At the opening, the ringgit traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.9276/9426 from 2.9322/9359 at Wednesday’s close, strengthened versus the British pound to 5.6922/7211 from 5.7218/7285, and advanced against the euro to 4.8698/8945 from 4.8888/8945 previously.
The local note was also better against its ASEAN counterparts.
It appreciated against the Singapore dollar to 3.3018/3188 from 3.3074/3115 at yesterday’s close, and climbed to 12.9794/13.0536 from 13.0240/0449 versus the Thai baht.
The ringgit was slightly better against the Indonesian rupiah at 260.1/261.5 from yesterday's 260.5/260.9 and stood higher at 7.45/7.49 against the Philippine peso from 7.46/7.48 previously. - Bernama
