The ringgit opened slightly higher against the US dollar in early trade, buoyed by the hawkish stance of the US Federal Reserve (Fed) and positive economic data.
At 10.20am, the ringgit was at 4.4930, up 0.13% against the USD from its close of 4.5005 at the end of Thursday.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid highlighted the sustained strength of the US Dollar Index (DXY) which has hovered around 109 points for the past three days.
The DXY has been on an uptrend since September last year, shortly after the Fed conveyed its expectation of a rate cut on September 17 and 18, 2024.
He added that the Fed may cut rates again this year, with a smaller quantum of cuts indicating the central bank’s intention to maintain a relatively tight monetary policy stance.
This will influence market sentiment with the ringgit likely to hover around RM4.50 in the near term.
Meanwhile, the ringgit opened mostly higher against its major currency group.
It strengthened against the Japanese yen at 2.8463/8528 from 2.8466/8500 and rose against the euro to 4.6332/6435 from 4.6382/6434.
However, the local currency weakened against the British pound, closing at 5.5359/5482 from 5.5271/5332 on Thursday.
In Asean currency trade, the ringgit was mixed.
It fell against the Thai baht to 13.0208/0592 from 12.9937/13.0142 and fell against the Singapore dollar to 3.2880/2956 from 3.2865/2906.
Meanwhile, the local currency remained unchanged against the Philippine peso at 7.69/7.71 and also unchanged against the Indonesian rupiah at 277.4/278.2.
