KUALA LUMPUR, July 2 — The ringgit opened slightly firmer against the United States dollar today as easing concerns over the US’ monetary policy outlook supported sentiment after remarks by US Federal Reserve (Fed) officials on interest rates.
At 8am, the local currency strengthened to 4.0900/0965 against the greenback from 4.0920/0965 at yesterday's close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market focus is on comments by new Fed chair Kevin Warsh at the European Central Bank Forum, which suggest Washington is in no hurry to adjust interest rates and remains committed to restoring price stability.
He said softer-than-expected US economic data also supported the ringgit.
He noted that the ADP National Employment Report showed that US private sector employment increased by 98,000 in June, below market expectations of 118,000.
“The report also suggests Americans are taking longer to find work, although there are signs of labour supply constraints in certain industries,” he said.
At the open, the ringgit was mostly lower against a basket of major currencies.
It weakened against the British pound to 5.4303/4389 from 5.4203/4262 at yesterday’s close and slipped against the Japanese yen to 2.5160/5201 from 2.5144/5174 previously. However, it strengthened against the euro to 4.6532/6606 from 4.6600/6651 yesterday.
Against regional currencies, the local note was mixed.
It rose against the Philippine peso to 6.63/6.65 from 6.64/6.65 previously and edged up against the Indonesian rupiah to 227.8/228.3 from 227.9/228.3.
However, it fell against the Thai baht to 12.2668/2944 from 12.2526/2708 yesterday and weakened against the Singapore dollar to 3.1564/1616 from 3.1555/1589 at yesterday’s close.
