The Malaysian ringgit (RM) opened lower against the US dollar following the strengthening of the DXY. However, it has slightly increased compared to other major world currencies.
At exactly 10.20 this morning, the ringgit fell slightly to be at 4.6980 against the US dollar from its closing of 4.6890 on Tuesday.
According to Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the US Dollar Index rose 0.1% to 104,606 points following the report of the United States (US) Consumer Confidence Index increasing more than expected to 103 points in May.
Additionally, Minneapolis Fed President Neel Kashkari hinted that their position remains to limit monetary policy and the possibility of an interest rate hike could happen if the situation is urgent.
Therefore, the ringgit will be traded cautiously as market participants await the inflation gauge that will be the Fed's stimulus on Friday.
Meanwhile, the ringgit traded higher against the Japanese yen at 2.9841/9865 from yesterday's close of 2.9876/9890, rose against the euro to 5.0956/0994 from 5.1002/1024 on Tuesday and rose against the British pound to 5.9888/9933 from 5.9897/9923 previously.
However, the local currency is trading mostly lower than most Asean currencies.
The local currency fell against the Singapore dollar to 3.4801/4829 from 3.4785/4802 at Tuesday's close, fell against the Thai baht to 12.8096/8240 from 12.7975/8089 yesterday and eased against the Indonesian rupiah to 291.8/292.2 from 291.3/291.6 previously.
Conversely, it rose against the Philippine peso to 8.08/8.09 from yesterday's 8.09/8.10.
