KUALA LUMPUR: The ringgit opened slightly higher against the US dollar as a risk-on mood emerged, with US equities benchmarks continuing to break record highs amid growing anticipation of a US Federal Reserve (Fed) rate cut.
At 8 am, the ringgit inched up to 4.6700/6800 against the greenback from yesterday’s close of 4.6745/6790.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, noted that recent economic data also supports the rate cut thesis.
"It was reported that US retail sales were flat at 0.0 per cent month-on-month in June, with consensus estimates pegging the growth rate at -0.3 per cent, while the previous month’s growth was 0.3 per cent,” he told Bernama.
Despite this, the US Dollar Index (DXY) was slightly higher by 0.05 per cent at 104.239, indicating the greenback remains well-supported.
Domestically, the ringgit traded higher against other major currencies.
It gained against the Japanese yen to 2.9493/9560 from 2.9503/9534 at Tuesday’s closing, strengthened against the British pound to 6.0603/0732 from 6.0614/0673, and improved against the euro to 5.0912/1021 from 5.0938/0987.
However, it traded mixed against ASEAN currencies.
It rebounded against the Singapore dollar to 3.4747/4827 from 3.4783/4819, and inched up against the Indonesian rupiah to 288.5/289.4 from 288.8/289.3.
Conversely, it depreciated against the Thai baht to 12.9683/13.0025 from 12.9459/9634 and remained flat against the Philippine peso at 8.00/8.02 from 8.00/8.01. - Bernama
