The ringgit opened higher against the US dollar, supported by a weaker greenback index amid thin festive trading and dovish Fed signals
KUALA LUMPUR: The ringgit opened higher against the US dollar in early trade today, supported by a weaker greenback.
The US Dollar Index declined 0.33% to 98.271 points amid thin trading conditions during the holiday-shortened week.
At 8 am, the local note strengthened to 4.0650/0765 against the US dollar from 4.0770/0800 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the softer DXY was largely due to reduced market participation during the festive period, coupled with dovish remarks from some US Federal Reserve officials.
He noted that recent signals from the Federal Open Market Committee suggested a cautious but accommodative stance.
“The latest FOMC decision on Dec 10 saw divided views among members whereby two voted to maintain the benchmark while one chose to vote for a 50-basis-point cut,” he told Bernama.
He expects lingering demand for the US dollar amid subdued regional trading in the absence of fresh catalysts.
The ringgit is likely to continue to oscillate between RM4.07 and RM4.08 against the greenback.
At the opening, the ringgit edged down against the Japanese yen to 2.5908/5983 from 2.5896/5916.
It inched down marginally against the British pound to 5.4751/4906 from 5.4750/4790.
The local currency improved against the euro to 4.7821/7956 from 4.7827/7862 at yesterday’s close.
It appreciated against the Singapore dollar to 3.1556/1647 from 3.1592/1618.
The ringgit rose versus the Thai baht to 13.0560/1022 from 13.0740/0895.
It firmed against the Indonesian rupiah to 242.2/243.1 from 242.9/243.3 previously.
The local currency was higher against the Philippine peso at 6.92/6.94 from 6.94/6.95 previously.
