KUALA LUMPUR: The ringgit opened higher against major currencies but edged lower against the US dollar on Thursday, as stronger US economic data and expectations of further interest rate hikes by the US Federal Reserve (Fed) supported the greenback.
At 8 am, the ringgit eased to 4.0835/0910 against the US dollar from Wednesday’s close of 4.0780/0825.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of further Fed rate hikes this year had supported the US Dollar Index (DXY), which rose 0.49 per cent to 101.096, amid stronger business sentiment.
“The US Composite Purchasing Managers’ Index (PMI) Output Index rose to 58.4 points in September, its highest level in 62 months.
“Apart from that, remarks by US Fed Governor Michael Barr indicated that the Fed is likely to resume its interest rate hike cycle this year,” he told Bernama.
Mohd Afzanizam said the two- and 10-year US Treasury yields subsequently jumped 14 and 15 basis points to 4.85 per cent and 5.11 per cent, respectively.
As such, he said the ringgit is likely to trade between RM4.08 and RM4.10 against the US dollar today.
At the opening, the ringgit traded higher against a basket of major currencies.
It strengthened against the euro to 4.6482/6568 from 4.6522/6573 at Wednesday’s close and advanced against the British pound to 5.4061/4161 from 5.4156/4216. It also gained against the Japanese yen to 2.5802/5852 from 2.5836/5868 previously.
The local note traded mixed against its ASEAN peers.
It appreciated against the Singapore dollar to 3.1897/1958 from 3.1909/1947 at Wednesday’s close and strengthened against the Thai baht to 12.2078/2364 from 12.2599/2782.
However, the ringgit eased against the Indonesian rupiah to 229.1/229.6 from 228.8/229.2 and was little changed against the Philippine peso at 6.52/6.53 versus 6.51/6.52 previously. – Bernama
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