Ringgit rebounds versus US dollar at opening

The ringgit opened rebounded against the US dollar at opening amid tepid market sentiment as investors anticipate another quarter-point increase in the US Federal Reserve Funds Rate in the upcoming Federal Open Market Committee (FOMC) meeting.

At 9 am, the ringgit rose to 4.7770/7810 against the greenback from Thursday’s close of 4.7855/7885.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index was higher by 0.07 per cent to 106.6.02 points.

“The third quarter (3Q) 2023 US Gross Domestic Product growth was surprisingly stronger-than-expected at 4.9 per cent quarter-on-quarter (consensus: 4.3 per cent) with investment surging 8.4 per cent (2Q: 5.2 per cent) alongside strong out-turn in consumer spending which gained 4.0 per cent from merely 0.8 per cent in the prior quarter,” he told Bernama. 

In early trade, the ringgit was mostly higher versus a basket of major currencies.

The ringgit edged up against the Japanese yen to 3.1766/1795 from 3.1838/1860 at the close on Thursday, increased marginally against the euro to 5.0436/0478 from 5.0468/0500, but weakened versus the British pound to 5.7931/7979 from 5.7847/7883 yesterday.

The local note was also traded mostly higher against other Asean currencies.

It rose against the Singapore dollar to 3.4871/4903 from 3.4900/4925 yesterday, strengthened against the Thai baht to 13.1867/2028 from 13.1952/2097 and was slightly higher versus the Philippine peso at 8.39/8.41 from 8.40/8.41. 

The ringgit was almost flat against the Indonesian rupiah at 300.0/300.4 from 300.5/300.9 yesterday. — BERNAMA