KUALA LUMPUR: The ringgit opened higher against the US dollar on Wednesday, supported by a weaker greenback after dovish signals from the US Federal Reserve (Fed).
At 8.01 am, the local note stood at 4.2220/2365 against the US dollar, up from Tuesday’s close of 4.2305/2355.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) eased 0.20 per cent to 99.064 points after the Fed chairman signalled rising risks in the labour market, boosting expectations of an interest rate cut at the upcoming Federal Open Market Committee (FOMC) meeting.
"The latest International Monetary Fund forecast shows the global economy is expected to grow 3.2 per cent in 2025, an upward revision from its July projection.
"Meanwhile, ongoing trade negotiations between the United States and other major economies are progressing positively, providing greater policy clarity compared to April 2025, when markets were caught off guard,” he told Bernama.
Mohd Afzanizam said the ringgit could perform slightly better today, with the USD/MYR pair expected to trade between RM4.22 and RM4.23.
However, the ringgit traded lower against a basket of major currencies.
It fell against the euro to 4.8988/9156 from 4.8879/8937 at Tuesday’s close, weakened against the British pound to 5.6241/6434 from 5.6118/6184, and slipped versus the Japanese yen to 2.7840/7938 from 2.7808/7843.
Against ASEAN currencies, the ringgit also eased.
It depreciated against the Thai baht to 12.9358/9866 from 12.8975/9182, edged lower versus the Singapore dollar to 3.2514/2631 from 3.2512/2553, and eased against the Indonesian rupiah to 254.2/255.2 from 254.8/255.2. It was little changed against the Philippine peso at 7.25/7.28 from 7.26/7.27 previously. - Bernama
