Ringgit Opens Lower Against US Dollar But Higher Versus Major Currencies

By Karina Imran

KUALA LUMPUR, Jan 14 (Bernama) -- The ringgit opened lower against the US dollar on Wednesday but higher against major currencies amid mixed market sentiment driven by geopolitical risk and Trump’s ongoing pressure on the United States Federal Reserve (US Fed).   

At 8.01 am, the local currency slipped to 4.0600/0680 against the greenback from Tuesday’s close of 4.0555/0600. 

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) has risen by 0.29 per cent to 99.152 points amid heightened geopolitical risk, as the protest in Iran continues to draw greater attention from the Trump administration. 

This suggests potential interference from the US is increasingly likely, he told Bernama.

“At the same time, macroeconomic data in the US also suggests that the headline inflation rate in December was sustained at 2.7 per cent, while the core inflation rate moderated to 2.6 per cent. 

“However, as the inflation rate remains well above the 2.0 per cent target, the US Fed is likely to keep the benchmark rate steady in the upcoming Federal Open Market Committee (FOMC) later this month," he said. 

He added that this might fuel further tension between the Fed and the Trump administration. 

At the opening, the ringgit traded higher against a basket of major currencies.

It appreciated versus the Japanese yen to 2.5499/5551 from 2.5521/5551 at yesterday’s close, strengthened vis-a-vis the euro to 4.7267/7360 from 4.7344/7396, and edged up against the British pound to 5.4506/4613 from 5.4676/4737 previously.

However, the local note was mixed against its ASEAN peers.

The ringgit was higher versus the Singapore dollar at 3.1495/1562 from 3.1511/1549 at Tuesday's close and gained vis-a-vis the Thai baht to 12.8697/9008 from 12.8840/12.9036. 

It edged down against the Indonesian rupiah to 240.5/241.1 from 240.3/240.6 yesterday and declined against the Philippine peso to 6.84/6.86 from 6.83/6.84 previously. 

-- BERNAMA