Ringgit Opens Higher Against Greenback Amid Ongoing Global Developments

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 16 (Bernama) -- The ringgit started the day stronger against the US dollar, buoyed by improved domestic market sentiment amid ongoing global developments.

At 8 am, the local note stood at 4.2220/2430 versus the greenback, strengthening from yesterday’s close of 4.2305/2355.

Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that renewed trade tensions between the United States and China had led to a weaker US dollar.

“The US Dollar Index (DXY) declined by 0.26 per cent to 98.793 points, as the escalating trade conflict is expected to reinforce the case for a potential interest rate cut by the US Federal Reserve.

“In light of this, the ringgit is likely to remain resilient, with the USD/MYR exchange rate expected to hover between RM4.22 and RM4.23,” he told Bernama.

The ringgit, however, traded mostly lower against a basket of major currencies, except for the euro, which appreciated to 4.9165/9410 from yesterday’s close of 4.9213/9272. It softened against the British pound to 5.6579/6860 from 5.6469/6535 on Wednesday and declined vis-à-vis the Japanese yen to 2.7957/8097 from 2.7948/7983.

In contrast, the ringgit trended higher against ASEAN currencies. The local note improved against the Thai baht to 12.9708/13.0425 from 12.9933/13.0151 at yesterday’s close, rose against the Singapore dollar to 3.2585/2749 from 3.2648/2689 previously, gained against the Indonesian rupiah to 254.7/256.0 from 255.2/255.6, and appreciated against the Philippine peso to 7.27/7.31 from 7.29/7.30 previously.

-- BERNAMA