The ringgit opened higher against the US dollar today even as its appeal as a safe-haven asset remained strong amid risk-on sentiment in the market.
The US dollar also gained additional ground following hawkish remarks by the Fed Chairman who stated that the US central bank may need to keep rates high for longer as inflation remains stubbornly low.
At 9.00am, the local currency rose to 4.7905/7950 against the US dollar from Tuesday's close of 4.7945/7970.
According to the Chief Economist of Bank Muamalat Malaysia Bhd, Dr Afzanizam said the US Dollar Index (DXY) continued to rise to 106,342 points following the expected decline in rates.
He also said that the still high inflation rate along with strong economic growth in the US has caused the market to reassess their expectations for monetary easing this year.
He pointed out that US bank earnings performed well in the first quarter of the year due to strong consumer and business spending.
The International Monetary Fund's (IMF) latest projections show that global economic growth will remain stable at 3.2% in 2024 and 2025. It will also raise concerns about slow progress in fiscal consolidation that could put pressure on inflation.
Meanwhile, the ringgit traded higher against a group of major currencies.
It rose against the euro to 5.0885/0932 from 5.0966/0992 at Tuesday's close, rose against the Japanese yen to 3.0964/0995 from 3.1020/1038 yesterday and strengthened against the British pound to 5.9536/9595 from 5.9701/9732 previously.
The local note is also trading higher against Asean currencies.
It rose against the Thai baht to 13.0496/0661 and appreciated against the Singapore dollar to 3.5103/5139 from 3.5135/5156 yesterday.
The ringgit also rose against the Indonesian rupiah to 296.1/296.5 from 296.3/296.6 yesterday and rose against the Philippine peso to 8.40/8.42 from 8.41/8.42 previously.
