Ringgit improves vs greenback in early trade

THE ringgit has improved against the US dollar this morning, ahead of the release of the United States (US) Federal Open Market Committee meeting minutes data. 

At 9 am, the ringgit rose to 4.4350/4390 versus the greenback from Wednesday’s close of 4.4420/4460.

ActivTrades trader Dyogenes Rodrigues Diniz said the market is more cautious ahead of this release as it offers clues on the US Federal Reserve’s (Fed) views.

“A more hawkish view, which would lead to harsher monetary tightening, may cause the US dollar to continue to rise against the ringgit towards the 4.5000 region,” he said.

Meanwhile, SPI Asset Management managing director Stephen Innes said traders and investors would also be cautious ahead of Friday’s core Personal Consumption Expenditures (PCE) inflation data, which will set the stage for Fed officials’ forecast updates at the March 22 meeting.

In the meantime, the ringgit was also traded higher against a basket of major currencies.

The local unit appreciated against the Japanese yen to 3.2884/2918 from 3.2935/2968 at Wednesday’s close and climbed vis-a-vis the Singapore dollar to 3.3090/3122 from 3.3157/3189 yesterday.

It also rose versus the euro to 4.7060/7102 from 4.7258/7301 and widened against the British pound to 5.3451/3499 from 5.3655/3703 previously. — Bernama