The local note, however, traded mixed against other major currencies

THE ringgit opened marginally higher against the US dollar today after US Federal Reserve (Fed) chairperson Jerome Powell revealed a more moderate stance of a half percentage point rise in the benchmark rate to 4.5%, leaving the market digesting the news.

At 9am, the local note was traded at 4.4110/4200 against the greenback compared to yesterday’s closing of 4.4195/4260.

ActivTrades trader Dyogenes Rodrigues Diniz said the interest rate hike was in line with expectations, however, investors were paying close attention to the statement by Powell, who offered some hints about the next steps to be taken by the central bank in 2023.

“According to Powell, inflation has shown signs of a decrease but is still high, which could cause the Fed to maintain a tighter stance over the next few months,” he said in a note.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

The local note rose against the British pound to 5.3896/3975 from yesterday’s closing of 5.4410/4521 and was marginally better versus the Singapore dollar to yesterday’s 3.2549/2602 from 3.2554/2625. 

It gained against the Japanese yen to 3.2128/2177 from yesterday’s closing of 3.2296/2364 but eased versus the euro to 4.7032/7101 from 4.6845/6940 previously. — Bernama