Ringgit opens slightly higher against US$ on mild demand

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Monday, driven by mild demand for the domestic note as data points indicated a more dovish outlook for US interest rates

At 9.21 am, the ringgit rose to 4.6760/6810 against the greenback from Friday’s close of 4.6785/6825.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid reckons that the ringgit is likely to perform better today as data points from the United States last week indicated that the US Federal Reserve might adopt a more accommodative monetary stance at some point in the future.

“The ringgit is probably moving towards its immediate support level of RM4.6611 against the greenback,” he told BK.

Ambank Research said in a note that the ringgit has firmed moderately following a healthier third quarter Malaysian gross domestic product (GDP) result announced Friday.

Bank Negara Malaysia (BNM) announced that the country’s economy expanded by 3.3 per cent in the third quarter from 2.9 per cent in the second quarter, supported by resilient domestic demand.

At 9.21 am, the ringgit was traded lower versus a basket of major currencies.

It decreased against the euro to 5.1006/1060 from Friday’s close of 5.0771/0814 and declined vis-a-vis the British pound to 5.8282/8344 from 5.8056/8105. It fell against the Japanese yen to 3.1273/1309 from 3.1267/1296 previously.

The local note opened mostly lower against other Asean currencies.

It increased vis-a-vis the Indonesian rupiah to 301.8/302.2 from 301.9/302.3 but depreciated against the Singapore dollar to 3.4823/4863 from 3.4769/4801 on Friday.

The ringgit also weakened against the Thai baht to 13.3402/3609 from 13.3298/3481 and fell against the Philippine peso to 8.43/8.44 from 8.40/8.41. – BK