KUALA LUMPUR – The ringgit opened marginally higher against the US dollar today, ahead of US Federal Reserve chairman Jerome Powell’s speech later today at the Jackson Hole Symposium.
At 8am, the ringgit edged up to 4.3740/3840 against the US dollar compared to 4.3760/3800 at the close yesterday.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market participants have been more guarded about the prospects of the US economy and this could translate into interest rate cuts, which are expected to commence in September.
However, he noted that the US Dollar Index (DXY) rose by 0.5% to 101.508 points overnight while the two-year US Treasury yield, which is typically sensitive to the Fed Funds Rate, edged up seven basis points to 3.99%.
“The ringgit is likely to remain sideways at around RM4.37 to RM4.38 as markets are waiting for more clues from the Fed chairman, who is expected to deliver a speech tonight at the Jackson Hole Symposium,” he said.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.9912/9984 from 3.0051/0082 at yesterday’s close, climbed vis-a-vis the euro to 4.8621/8733 from 4.8744/8789 and appreciated against the British pound to 5.7282/7413 from 5.7431/7483 previously.
The local note also traded mostly higher against Asean currencies.
It improved against the Singapore dollar to 3.3379/3461 from 3.3474/3507 at yesterday’s close, was marginally higher against the Indonesian rupiah at 280.3/281.1 from 280.4/280.9 and rose vis-a-vis the Thai baht to 12.6702/7109 from 12.7383/7552 previously.
However, it was almost flat versus the Philippine peso at 7.76/7.79 from 7.76/7.78 on yesterday’s close. – August 23, 2024