Ringgit opened marginally higher against the US dollar

KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Thursday, with the US Dollar Index (DXY) increasing by 0.2 per cent to 103.47 points, as global interest rate cuts gained momentum, while the United States (US) Federal Reserve seemed hesitant to follow suit.

At 8.01 am, the ringgit edged up to 4.2940/3100 against the greenback from yesterday’s close of 4.2945/2995.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the European Central Bank is expected to lower its policy rates by 25 basis points due to inflation falling below the two per cent target and weak business sentiment in the manufacturing sector.

Mohd Afzanizam also said that regionally, the Bank of Thailand made a surprise 25 basis point cut, following similar moves by Indonesia and the Philippines, signalling that global interest rates may have peaked.

“However, the US Federal Reserve may hold off on further easing, given the resilience of the US economy, which gives the dollar an advantage.

“The ringgit is likely to remain stable, as Bank Negara Malaysia may take a different approach, (owing to) concerns about persistent inflation risks,” he told Bernama when contacted.

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

It rose against the euro to 4.6624/6798 compared with Wednesday’s close of 4.6780/6834, improved against the British pound to 5.5766/5974 from 5.5889/5954, and increased vis-a-vis the Japanese yen to 2.8713/8822 from 2.8772/8807.

The local note was traded mixed versus ASEAN currencies.

It appreciated against the Singapore dollar to 3.2694/2818 from yesterday’s 3.2800/2841 and was higher against the Thai baht to 12.9279/9858 from 12.9329/9546 on Wednesday.

The ringgit was almost flat against the Indonesian rupiah at 276.8/278.0 from 276.8/277.3 yesterday and almost unchanged versus the Philippine peso at 7.43/7.46 from 7.43/7.45 previously.