Ringgit Opens Slightly Higher Against Greenback Amid Focus On Fed Outlook

By K. Naveen Prabu

KUALA LUMPUR, July 7 (Bernama) -- The ringgit opened slightly higher against the US dollar on Tuesday amid continued focus on the United States (US) Federal Reserve's (Fed) interest rate outlook.

However, the local note weakened against all major currencies except the Japanese yen and Thai baht.

At 8 am, the local note rose to 4.0815/0880 against the greenback compared with 4.0825/0875 at Monday's close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors remained focused on the Fed, while the resilience of the US services sector was expected to keep the US dollar well supported.

“The US Institute for Supply Management (ISM) Services Index eased to 54.0 in June from 54.5 in the previous month. Despite the decline, business sentiment in the services sector remained fairly resilient.

“Additionally, Fed Governor Christopher Waller's reaffirmation of the Fed's commitment to bringing inflation back to its two per cent target suggests that interest rates could remain higher for longer, thereby supporting the US dollar," he told Bernama. 

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

It weakened against the euro to 4.6696/6771 from 4.6543/6640 at Monday's close and depreciated against the British pound to 5.4668/4755 from 5.4336/4449 previously. However, it strengthened against the Japanese yen to 2.5179/5221 from 2.5203/5257.

Against regional currencies, the local note also traded mostly lower.

It depreciated against the Singapore dollar to 3.1593/1648 from 3.1500/1571 at Monday's close, slipped against the Indonesian rupiah to 226.8/227.2 from 226.5/227.1 previously, and fell against the Philippine peso to 6.63/6.65 from 6.62/6.64. However, it strengthened against the Thai baht to 12.2545/2807 from 12.2627/2942.

--BERNAMA