The Malaysian ringgit strengthened against the US dollar and major currencies as the greenback softened on weak US data and improved global risk sentiment.
KUALA LUMPUR: The ringgit opened firmer against the US dollar and other major currencies on Wednesday. The move was supported by a softer greenback following weaker US economic data and improved global risk appetite.
At 8 am, the ringgit strengthened to 3.8895/9000 against the US dollar. This was up from Tuesday’s close of 3.8915/8980.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted the US Dollar Index had edged up 0.17% to 97.874 points. He said this was underpinned by hawkish Federal Reserve remarks and signs of resilience in parts of the US economy.
READ MORE: Ringgit touches RM3.87 against US dollar at opening
“The US dollar-ringgit pair briefly traded above RM3.90 before closing at RM3.8948, down 0.11% from the previous session,” he told Bernama. “As such, the ringgit is likely to trade sideways today, hovering between RM3.89 and RM3.90.”
At the open, the ringgit was higher against a basket of major currencies. It inched up against the Japanese yen to 2.4944/5014 from 2.4968/5011.
The local note strengthened versus the British pound to 5.2489/2631 from 5.2531/2619. It also appreciated against the euro to 4.5799/5923 from 4.5873/5950.
Against ASEAN currencies, the ringgit traded mostly firmer. It rose against the Singapore dollar to 3.0699/0786 from 3.0726/0780.
The ringgit gained versus the Thai baht to 12.5060/5495 from 12.5463/5726. It was marginally higher against the Indonesian rupiah at 231.1/231.8 from 231.2/231.7.
It also edged up against the Philippine peso to 6.73/6.75 from 6.74/6.75 previously.