The Malaysian ringgit opens higher against the US dollar as policy uncertainties weigh on the greenback, trading at 4.1900/2065.
KUALA LUMPUR: The ringgit opened higher against the US dollar and stayed on a firm footing, as lingering uncertainty over US monetary policy weighed on the greenback.
At 8 am, the ringgit stood at 4.1900/2065 against the US dollar, compared with Monday’s close of 4.1980/2025.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar-ringgit pair is expected to remain in a narrow range, hovering around the RM4.20 level today.
He said US Federal Reserve (Fed) Governor Lisa Cook acknowledged that the labour market is weakening but stopped short of giving rate guidance for the December meeting. Meanwhile, Fed Governor Stephen Miran, who voted for a 50-basis-point cut, described the current monetary policy stance as restrictive.
“The US Dollar Index (DXY) remained at an elevated level, rising 0.07 per cent to 99.871 points in response to the remarks,” Mohd Afzanizam told Bernama.
On the US economy, he said the ISM Manufacturing Index fell to 48.7 points in October, marking the eighth consecutive month below the 50-point demarcation line.
“Judging from the ISM survey responses, most businesses have been pessimistic, as tariffs have led to higher prices and supply chain disruptions, given the limited options to source production inputs domestically,” he added.
At the opening, the ringgit traded higher against major currencies.
It strengthened against the yen to 2.7157/7265 from 2.7230/7261 at Monday’s close, edged up against the British pound to 5.5006/5223 from 5.5099/5158, and rose versus the euro to 4.8244/8434 from 4.8344/8396 previously.
The local note also traded better against ASEAN currencies.
It improved against the Singapore dollar to 3.2095/2224 from 3.2206/2243, firmed against the Philippine peso to 7.12/7.16 from 7.14/7.15, and advanced against the Thai baht to 12.8852/9431 from 12.9285/9483.
It was little changed against the Indonesian rupiah at 251.2/252.3 from 251.7/252.1 previously.
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