Ringgit higher against US dollar in early session

THE ringgit opened higher against the US dollar on Tuesday amid a weakening greenback against major currencies.

At 9.01 am, the local note stood at 4.4260/4330 versus the greenback from last Thursday’s closing rate of 4.4350/4395.

The market was closed for trading on Friday and Monday in conjunction with the Hari Raya Aidilfitri holiday.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid noted that the US dollar Index (DXY) was down as the US Federal Open Market Committee meeting (FOMC) meeting draws nearer. The next meeting is on May 3.

“Apart from that, the expiration of the US government debt ceiling which will expire in June has also added to the market uncertainties.

“If the US Federal Reserve (Fed) turns dovish it might lead to a lower DXY which would translate to ringgit appreciation. For now, expect the USD-MYR (Malaysian ringgit) to linger around RM4.42 to RM4.43 today,” he told Bernama. 

At the opening, the ringgit traded lower against a basket of major currencies.

It slipped against the Japanese yen to 3.2954/3008 from 3.2923/2958 at the close last Thursday, depreciated against the British pound to 5.5307/5395 from 5.5127/5183 and eased to 4.8938/9016 from 4.8616/8666 vis-a-vis the euro.  

The local note traded mixed against Asean currencies.

It was higher against the Indonesian rupiah at 295.4/296.1 from 296.4/297.1 and rose against the Singapore dollar to 3.3213/3268 from 3.3256/3292.

The ringgit dropped to 7.95/7.97 against the Philippine peso from last Thursday’s close of  7.91/7.93 and went down against the Thai baht to 12.9113/9370 from 12.8947/9134. — Bernama