KUALA LUMPUR, Apr 27 — The ringgit edged higher against the US dollar but traded mostly lower against other major currencies in early trade today amid subdued market sentiment ahead of the US Federal Reserve meeting later this week, an analyst said.
At 8.14 am, the local currency rose marginally to 3.9610/9680 against the greenback, compared with 3.9630/9670 at Friday’s close.
SPI Asset Management managing partner Stephen Innes said the foreign exchange market is currently subdued, which is typical ahead of a US Federal Reserve meeting as traders assess whether policy guidance will lean hawkish or dovish.
The Federal Open Market Committee meeting will be held on April 28 and 29.
Innes said market positioning has narrowed and conviction has eased, with participants largely holding back until there is greater clarity.
On the geopolitical front, he said the lack of progress in Iran peace talks is weighing slightly on risk sentiment and has likely capped what could have been a broader US dollar sell-off earlier in the week.
“That said, unless we see a meaningful military escalation that drives oil prices materially higher, the impact should remain contained. For now, I expect a modest bias towards ringgit appreciation, but nothing aggressive.
“The broader setup still points to range trading, as the US dollar is unlikely to weaken significantly with oil prices holding around current levels. That should keep downside in the US dollar contained, limiting any sustained ringgit rally,” he told Bernama.
At the opening, the ringgit depreciated against a basket of major currencies.
It weakened against the British pound to 5.3529/3624 from 5.3429/3483 at Friday’s close, fell against the Japanese yen to 2.4831/4876 from 2.4808/4834 and slipped against the euro to 4.6379/6461 from 4.6312/6358.
The local currency traded mixed against ASEAN peers.
It eased against the Singapore dollar to 3.1020/1078 from 3.1009/1043 at Friday’s close, and edged higher against the Thai baht to 12.2181/2465 from 12.2183/2363.
It strengthened against the Indonesian rupiah to 229.9/230.4 from 230.0/230.3 and was nearly unchanged versus the Philippine peso at 6.52/6.54 from 6.52/6.53.
