Kuala Lumpur: The ringgit opened slightly higher against a softer greenback following the US Federal Reserve (Fed) stance that indicated it was not in a rush to cut interest rates, said an analyst.
At 8am, the ringgit rose to 4.4660/4.4730 against the greenback from Monday’s close of 4.4680/4.4730.
AdvertisementBank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the Dollar Index (DXY) was down by 0.37% to 107.922 points as the US Fed chair Jerome Powell reiterated the Fed’s stance not to rush the decision on reducing policy rates.
“It seems that the broad direction is to cut the Fed Fund Rate. It is a question of timing and the degree of the policy accommodation.
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However, Afzanizam said comments from US President Donald Trump on tariffs would continue to dictate the market sentiments given the nature of such announcements, which tend to surprise the markets.
AdvertisementHence, he said the policy uncertainties on tariffs would keep the currency market, including the ringgit, in a tight range.
Meanwhile, the ringgit traded lower against major currencies.
AdvertisementIt declined versus the British pound to 5.5602/5.5689 from 5.5430/5.5492 and depreciated vis-a-vis the euro to 4.6281/4.6354 from 4.6128/4.6179 previously.
However, it appreciated against the Japanese yen to 2.9233/2.9281 from 2.9352/2.9387 at Monday’s close.
The local note traded mostly higher against Asean currencies.
The ringgit strengthened against the Indonesian rupiah to 272.5/273.1 from 273.1/273.5, advanced versus the Philippine peso to 7.67/7.69 from 7.69/7.70 and improved against the Thai baht to 13.1060/13.1369 from 13.1768/13.1986 previously.
It fell against the Singapore dollar to 3.3011/3.3067 from 3.3006/3.3048 on Monday.