KUALA LUMPUR, Aug 19 — The ringgit opened higher against the US dollar, supported by expectations that the possibility of a US Federal Reserve (Fed) interest rate hike at its September meeting has receded, an economist said.
At 8 am, the local currency strengthened to 4.0565/0625 against the greenback from yesterday's close of 4.0575/0615.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam said the focus will now be on the Federal Open Market Committee (FOMC) minutes, due to be released today, as the market seeks affirmation that the Fed is in no hurry to tighten its monetary stance.
“At the same time, positive data points for Malaysia, such as strong growth and stable inflation, suggest the Malaysian economy is resilient, with Bank Negara Malaysia having the luxury of keeping the policy rate unchanged.
“As such, we expect the ringgit to hover around RM4.05 to RM4.07 today,” he told Bernama.
At the opening, the local currency traded mixed against a basket of major currencies.
It strengthened against the euro to 4.6958/7028 from 4.6982/7028 previously, but weakened against the Japanese yen to 2.5428/5467 from 2.5420/5446 and against the British pound to 5.4909/4990 from 5.4902/4956 at yesterday's close.
The local note also traded higher against the Singapore dollar at 3.1729/1778 from 3.1756/1790 and rose against the Thai baht to 12.2453/2697 from 12.2657/2819.
The ringgit was almost flat against the Indonesian rupiah at 227.1/227.5 from 227.1/227.4 and was unchanged against the Philippine peso at 6.56/6.58 from Tuesday's close.
