KUALA LUMPUR: The ringgit eased against the US dollar at the opening today, taking a breather from recent gains as markets assessed the US Federal Reserve’s latest stance, which was seen as mildly dovish yet cautious.
At 8 am, the ringgit stood at 4.4245/4360 against the greenback, down from Thursday’s close of 4.4215/4270.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the ringgit lacked strong directional cues despite fluctuations in US Treasuries overnight.
“Although US Treasuries experienced fluctuations yesterday, initially declining before rebounding, they ultimately closed unchanged, indicating a lack of immediate strong signals for capital flows that could significantly influence the ringgit’s movement,” he told Bernama.
He opined that Asian currencies, including the local note, saw brief gains against the greenback following the US Federal Open Market Committee (FOMC) outcome yesterday, but this reaction was short-lived with little lasting effect.
“Moving forward, uncertainty persists as the US prepares to implement reciprocal tariffs on April 2, leaving markets on edge.
“Should risk sentiment deteriorate, investors may gravitate towards safe-haven assets like the US dollar, which could exert additional pressure on the ringgit,” he said.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said Malaysia’s consumer price index for February, due today, is expected to show a 1.5 per cent year-on-year increase after holding at 1.7 per cent for two consecutive months.
“As such, a benign inflation reading would mean that Bank Negara Malaysia is comfortable with the prevailing monetary policy conditions and would be inclined to keep the overnight policy rate steady in the near term,” he said.
He projected the ringgit to trade between 4.42 and 4.43 against the US dollar today.
Against a basket of major currencies, the ringgit traded lower this morning.
It weakened against the euro to 4.8028/8153 from 4.7973/8033 at Thursday’s close, fell against the British pound to 5.7368/7517 from 5.7276/7347, and slipped against the Japanese yen to 2.9773/9852 from 2.9728/9767.
The local note was mostly lower against ASEAN currencies.
It edged down against the Singapore dollar to 3.3150/3241 from 3.3117/3164 at the previous close, eased against the Philippine peso to 7.73/7.76 from 7.72/7.74, and weakened against the Indonesian rupiah to 268.3/269.2 from 268.1/268.6.
However, it strengthened against the Thai baht to 13.1112/1538 from 13.1163/1388 at yesterday’s close.
