The ringgit opened lower against the US dollar in early trade, tracking other major currencies amid cautious sentiment over West Asia tensions
KUALA LUMPUR: The ringgit eased against the US dollar in the early session, tracking other major currencies, as the domestic unit is likely to stay cautious amid lingering West Asia tensions that further disrupt global oil and gas flows.
At 8 am, the local currency stood at 4.0855/0920 versus the greenback, compared with 4.0850/0890 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the implication is how the prevailing condition would translate into inflation and, more importantly, the US Federal Open Market Committee (FOMC) decision on interest rates.
“The odds for a September hike have risen to 64.8 per cent compared to 51.5 per cent in early July. Hence, it is going to be dollar-positive in the near term,” he told Bernama.
SPI Asset Management managing partner Stephen Innes said the local note has traded resiliently this week despite a broadly stronger greenback, reflecting a clear dispersion trade across global foreign exchange markets rather than a simple one-way dollar move.
“The local currency has been supported by Malaysia’s improving terms of trade after the latest strong trade data, while its status as an energy exporter has also offered some relative protection as oil prices rise,” he said.
Meanwhile, the ringgit opened marginally lower against a basket of major currencies today.
It appreciated vis-a-vis the Japanese yen to 2.5051/5092 from 2.5057/5081 at Wednesday’s close, depreciated against the euro to 4.6624/6698 from 4.6585/6631, and eased versus the British pound to 5.4648/4735 from 5.4612/4666 previously.
The local currency also performed mixed against regional currencies.
It was lower versus the Singapore dollar to 3.1646/1699 from 3.1635/1668 at yesterday’s close and edged down versus the Thai baht to 12.0924/1173 from 12.0787/0944.
The ringgit was flat against the Indonesian rupiah at 228.0/228.4 compared with 228.0/228.3 at yesterday’s close and was also unchanged against the Philippine peso at 6.61/6.63 from 6.61/6.62.
