Ringgit opens nearly unchanged against US Dollar today

KUALA LUMPUR: The ringgit opened nearly unchanged against the US dollar on Monday, but the short-term outlook for the local currency remains positive with expectations of a potential interest rate cut by the United States gaining momentum, economists said.

According to Bernama, at 8 a.m., the ringgit was quoted at 4.6550/6610 against the US dollar, compared to 4.6550/6605 on Friday.

Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said attention will be on the US Federal Open Market Committee (FOMC) meeting on July 30-31, with the market anticipating a possible interest rate cut by the Federal Reserve.

“We are likely to see further support for the ringgit today,” he said.

Mohd Afzanizam added that the market is also monitoring the Bank of Japan’s next move following its initiation of quantitative tightening.

“Their monetary policy decision is on July 31. Japan is seen as lagging in terms of tightening monetary policy,” he said.

Meanwhile, the local currency was mostly lower against a basket of major currencies.

The ringgit appreciated against the euro to 5.0516/0581 from 5.0530/0590 last Friday and was higher against the pound at 5.9887/9964 from 5.9901/9971 previously, but depreciated against the Japanese yen to 3.0200/0241 from 3.0176/0214 earlier.

At the same time, the ringgit traded mixed against ASEAN currencies.

The local currency weakened against the Singapore dollar to 3.4659/4706 from 3.4641/4684 last Friday and was lower against the Thai baht at 12.9525/9764 from 12.9069/9268 previously.

The ringgit was unchanged against the Indonesian rupiah at 285.5/286.0 from 285.5/286.0 last Friday and remained steady against the Philippine peso at 7.97/7.99 previously.