Ringgit opens higher vs US dollar, revisits RM4.19 level

The ringgit revisited the RM4.19 level against the US dollar today, with immediate support expected at RM4.07, driven by Malaysia’s lower-than-forecasted consumer price index (CPI) increase of 1.9 percent and a 50 basis point interest rate cut by the US Federal Reserve.

At 8am, the local note traded at 4.1995/2055 versus the greenback from Monday’s close of 4.2000/2060.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit should remain well supported today due to the latest CPI print released yesterday, which came in at 1.9 percent, suggesting that the inflation rate has stabilised.

“The inflation rate has been stabilised at a time when economic activities in Malaysia continue to grow at a healthy clip.

“This would incentivise the Bank Negara to keep the current monetary policy stance, which is deemed supportive of growth,” he told Bernama.

Afzanizam said this would be positive for the ringgit as the gap between the US interest rates and Malaysia would narrow going forward.

The ringgit also traded more easily against a basket of major currencies.

It slipped versus the euro to 4.6661/6727 from 4.6645/6712 on Monday, eased against the British pound to 5.6059/6139 from 5.5805/5885, weakened vis-a-vis the Japanese yen to 2.9253/9298 from 2.9238/9282.

The ringgit traded steadily to slightly weaker against Asean currencies.

It weakened against the Thai baht to 12.7439/7695 from 12.7203/7451, fell against the Singapore dollar to 3.2532/2581 from 3.2503/2552 at Monday’s close, was flat against the Philippine peso and stood at 7.50/7.52 since Monday and unchanged versus the Indonesian rupiah at 276.1/276.7.

- Bernama

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