Today, the Malaysian Ringgit (RM) currency opened strongly against the US dollar in the opening session on Friday amid positive developments in the Asian foreign exchange market.
At exactly 9.15 am, the ringgit rose to 4.6660/6700 against the US dollar compared to 4.6720/6765 at yesterday's close.
According to the Chief Economist of Bank Muamalat Malaysia Bhd, Mohd Afzanizam Abdul Rashid said the risk improved after attention focused on the Japanese yen when the Bank of Japan (BOJ) was seen to change course soon after maintaining an overly accommodative policy.
Japan's inflation rate has consistently exceeded the two percent target with headline and core CPI at 3.2% and 2.7% respectively in October.
Therefore, Afzanizam said there has been a significant increase in the Japanese yen lately to ¥144.15. This happened because the Federal Reserve (Fed) is expected to maintain interest rates next week when the Federal Open Market Committee (FOMC) meets on December 12-13.
Accordingly, the ringgit will continue its stability for today around RM4.67 to RM4.68 against the US dollar.
The ringgit is now trading low compared to major world currencies such as the Japanese yen down to 3.2632 and the euro to 5.0359 compared to yesterday. However, it was slightly firmer against the British pound to 5.8778.
Meanwhile, the ringgit traded lower compared to other Asean currencies such as the Thai baht which fell to 13.2916, the Singapore dollar to 3.4912 and the Indonesian rupiah to 300.6. However, it was slightly firmer against the Philippine peso, rising to 8.42 from yesterday.
