KUALA LUMPUR: The ringgit opened firmer against the US dollar on Friday as traders shied away from the greenback amid growing anticipation of an interest rate cut by the US Federal Reserve (Fed), said an analyst.
At 8am, the ringgit rose to 4.2340/2580 against the greenback, compared to Thursday's close of 4.2465/2510.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Fed Governor Christopher Waller suggested the central bank cut interest rates this month, and that it should not wait for the labour market to deteriorate before doing so.
Mohd Afzanizam added that investors remain cautious amid concerns whether countries can secure concessions before the new US tariffs take effect on Aug 1.
"Issues surrounding the US tariff remain high on the agenda," he told Bernama.
On the domestic front, he said all eyes are on the advance estimate of Malaysia's second quarter 2025 gross domestic product (GDP) scheduled to be announced today.
"We forecast the economy will grow by 4.5 per cent, as front-loading activities are expected to support Malaysia's external demand, while a resilient labour market and ongoing investment activities will continue to drive domestic demand," he added.
On that note, he said the ringgit is likely to trade within the RM4.24 to RM4.25 range against the US dollar today.
At the opening, the ringgit was traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.8523/8687 from 2.8548/8580, strengthened against the British pound to 5.6867/7189 from 5.6886/6946 and advanced versus the euro to 4.9178/9457 from 4.9217/9269 at yesterday's close.
The local note also trended higher against most Asean currencies.
It rose vis-a-vis the Singapore dollar to 3.2939/3131 from 3.3013/3051, gained against the Thai baht to 13.0385/1201 from 13.0521/0720, appreciated against the Indonesian rupiah to 259.1/260.6 from 259.8/260.2 and edged up versus the Philippine peso to 7.39/7.44 from 7.41/7.43 previously. - Bernama
