KUALA LUMPUR, Sept 15 — The ringgit opened higher against the US dollar today amid cautious sentiment ahead of key central bank meetings this week, an economist said.
At 8 am, the local currency edged up to 4.0705/0775 against the greenback from yesterday’s close of 4.0735/0770.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market attention was focused on the upcoming Federal Open Market Committee (FOMC) meeting and the Bank of Japan’s (BoJ) policy decision.
“Therefore, ahead of the FOMC and BoJ meetings this week, the ringgit is likely to stay cautious.
“Judging from movements in the bond market, it appears that the US Federal Reserve (Fed) will deliver a 25-basis-point hike,” he told Bernama.
He said auctions of three- and six-month US Treasury bills saw yields rise to 3.97 per cent and 4.06 per cent, respectively, from 3.80 per cent and 3.89 per cent at the previous auctions.
Meanwhile, Brent crude was hovering around US$105.68 per barrel, with Saudi Arabia’s major East-West pipeline expected to take weeks to return to operation, he said.
Oil supply shortages are expected to exert upward pressure on global oil prices, he added.
“As such, the ringgit is expected to trade within a narrow range today,” he said.
At the opening, the ringgit traded mixed against a basket of major currencies.
The local note appreciated against the euro to 4.7006/7087 from yesterday’s 4.7008/7049, but weakened against the yen to 2.6362/6409 from 2.6355/6380 and edged down against the British pound to 5.4952/5046 from 5.4931/4978.
The ringgit also traded mixed against its ASEAN peers.
It firmed against the Singapore dollar to 3.2041/2101 from 3.2055/2085, strengthened against the Indonesian rupiah to 230.3/230.8 from 230.5/230.8 and rose against the Philippine peso to 6.47/6.49 from 6.48/6.49.
The local currency weakened against the Thai baht to 12.2476/2742 from 12.2445/2598.
