KUALA LUMPUR, July 29 — The ringgit opened slightly higher against the US dollar today, supported by improved market sentiment following Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour's upbeat assessment of the domestic economy and expectations that the US Federal Reserve will keep interest rates unchanged.
At 8am, the local currency rose to 4.0880/0940 against the greenback from yesterday's close of 4.0885/0930.
An analyst said sentiment improved after Abdul Rasheed said Malaysia's economy remains on track to grow by 4.0 to 5.0 per cent in 2026, likely towards the upper end of the range, with inflation expected to remain manageable despite the energy supply shock.
He said Malaysia's strong economic fundamentals, ongoing reform agenda and commitment to sound economic management have enabled the government to respond effectively to external shocks.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade cautiously ahead of the US Federal Open Market Committee (FOMC) policy decision later today, hovering around RM4.08 to RM4.09 against the US dollar.
"The US Conference Board Consumer Confidence Index came in below expectations at 90.8 points in July, compared with the consensus forecast of 92.4 points.
"Following the data release, the two-year and 10-year US Treasury yields fell by four basis points to 4.29 per cent and 4.61 per cent respectively, suggesting the US Federal Reserve may be inclined to keep interest rates unchanged in the near term," he told Bernama.
At the opening, the ringgit traded mixed against major and regional currencies.
It strengthened against the Japanese yen to 2.4945/4983 from 2.4948/4976 at yesterday's close, but weakened against the euro to 4.6538/6606 from 4.6429/6480 and the British pound to 5.4305/4385 from 5.4287/4347.
Against regional currencies, the ringgit fell versus the Singapore dollar to 3.1625/1675 from 3.1603/1640 and the Thai baht to 12.1775/2016 from 12.1494/1681.
It was little changed against the Indonesian rupiah at 226.0/226.5 from 226.0/226.4 and was flat against the Philippine peso at 6.63/6.64.
