Ringgit opens slightly higher versus US dollar

THE ringgit opened slightly higher against the US dollar this morning, although the greenback had strengthened following a rise in the US Dollar Index (DXY), an economist said.

At 9 am, the ringgit was slightly higher at 4.7170/7230 versus the greenback from yesterday’s close of 4.7175/7205. 

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the DXY rose 0.10 per cent to 105.259 points, indicating better demand for the greenback.

“The local note will continue to remain in a tight range as the market awaits the outcome from the Federal Open Market Committee’s (FOMC) meeting tonight,” he told Bernama.

However, he said the 10-year US Treasury note auction drew a strong bid from investors, with yields falling to 4.438 per cent from the previous auction of 4.483 per cent with a bid-to-cover ratio of 2.67 times, the highest since February 2022.

“It appears that the rate cut thesis in September is gaining more steam ahead of the FOMC decision on June 12,” he added.

At the close, the ringgit traded mostly higher against a basket of major currencies, except for the Japanese yen, which fell to 3.0006/0046 from Tuesday’s close of 3.0000/0021.

The local unit strengthened versus the euro to 5.0642/0706 from 5.0708/0741 yesterday, and appreciated vis-a-vis the British pound to 6.0062/0138 from 6.0073/0111 previously.

Meanwhile, the ringgit traded mixed against its ASEAN peers. 

The local note inched up against the Singapore dollar to 3.4853/4900 from 3.4862/4887 at Tuesday’s close and rose against the Thai baht to 12.8315/8521 from 12.8364/8491 yesterday.

However, it traded almost flat, each against the Indonesian rupiah to 289.5/290.0 from 289.5/289.9 yesterday and against the Philippine peso to 8.03/8.05 from 8.03/8.04 previously. — BERNAMA / pic BLOOMBERG