KUALA LUMPUR: The ringgit opened lower against the US dollar today as investors shifted their attention to incoming US economic data, maintaining confidence that the Federal Reserve (Fed) will move ahead with a 25-basis-point rate cut after its two-day meeting concludes later tonight.
At 8 am, the local currency stood at 4.1140/1250 against the greenback, compared with 4.1105/1165 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist, Mohd Afzanizam Abdul Rashid, said the US Dollar Index (DXY) rose 0.13 per cent to 99.220 amid mixed signals from the labour market.
"The local note should remain well supported, although it may trade in a narrow range of RM4.11 to RM4.12,” he told Bernama.
He added that market consensus expects the US Federal Open Market Committee (FOMC) to proceed with a 25-basis-point cut on Wednesday.
"They have priced in the 25-basis-point cut. The key question now is whether the FOMC will remain cautious next year or adopt a more aggressive rate-cut stance.
"With the full impact of US reciprocal tariffs expected next year, inflation could remain elevated,” he said.
The ringgit rose against the British pound to 5.4729/4875 from 5.4863/4943 at Tuesday’s close, improved against the euro to 4.7838/7966 from 4.7900/7970, and edged up versus the Japanese yen to 2.6236/6307 from 2.6332/6373.
It traded mostly lower against ASEAN currencies, slipping versus the Singapore dollar to 3.1719/1807 from 3.1705/1753, falling against the Indonesian rupiah to 246.6/247.4 from 246.4/246.9, and declining versus the Thai baht to 12.9225/9680 from 12.9172/9413.
The ringgit also weakened against the Philippine peso to 6.95/6.97 from 6.94/6.96 previously. - Bernama
