Ringgit opens higher against US Dollar

KUALA LUMPUR: The ringgit closed higher against the US dollar today, surpassing the RM4.61 level, the highest in seven months.

According to Bernama, economists expect the local currency to rise further as investors await the outcome of the US Federal Open Market Committee (FOMC) meeting later today.

At 8:01 a.m., the ringgit increased to 4.6180/6235 from 4.6330/6400 when it closed on Tuesday.

The boost in global market sentiment and strong domestic economic prospects have strengthened the local currency.

Dr. Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said the decline in US Treasury yields, dropping by four basis points, indicates that more investors expect the US Federal Reserve to cut interest rates soon.

“The ringgit is currently trading around RM4.61, and we anticipate RM4.6099 to be the next support level.

“However, profit-taking activity is expected after the FOMC meeting concludes,” he told Bernama.

Meanwhile, the ringgit opened mostly higher against a basket of major currencies.

The local unit strengthened against the British pound to 5.9272/9343 from 5.9427/9472 when it closed on Tuesday and surged against the euro to 4.9944/5.0003 from 5.0044/0082 yesterday, but declined against the Japanese yen to 3.0244/0284 from 2.9845/9870 previously.

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

It appreciated against the Indonesian rupiah to 283.2/283.7 from 283.3/283.7 when it closed yesterday and remained unchanged against the Philippine peso at 7.87/7.89.

The local currency fell against the Singapore dollar to 3.4411/4455 from 3.4370/4398 yesterday and declined against the Thai baht to 12.8707/8932 from 12.8319/8470 previously.