KUALA LUMPUR – The ringgit rebounded to open slightly higher against the US dollar today, despite cautious sentiment ahead of next week’s United States (US) presidential election and the Federal Open Market Committee (FOMC) meeting.
At 8.03am, the local currency edged up to 4.3580/3645 against the greenback, compared with yesterday’s close of 4.3605/3640.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) remains elevated at 104.316 points as the market awaits the outcomes of both events next week.
The US presidential election is scheduled for November 5, while the FOMC meeting will take place on November 6 to 7, 2024.
“We can all agree that the US economy is still resilient compared to its G7 counterparts, allowing the US Federal Reserve to take its time in easing monetary policy.
“In this context, traders are likely to favour the US dollar amidst heightened uncertainties,” he told Bernama.
Afzanizam added that the fervour surrounding the US presidential election will continue to dominate market sentiment, while economic indicators such as Nonfarm Payroll (NFP) and the unemployment rate seem to be taken for granted.
He expects the ringgit to remain soft against the US dollar, driven by external events.
The ringgit strengthened against a basket of major currencies this morning.
It appreciated against the Japanese yen to 2.8471/8515, compared with 2.8521/8545 at Monday’s close; it rose against the British pound to 5.6549/6634 from 5.6564/6610; and gained against the euro to 4.7145/7215 from 4.7159/7197 previously.
Meanwhile, the ringgit traded mixed against Asean currencies.
It strengthened against the Singapore dollar to 3.2955/3007 from 3.2979/3008 at the close on Monday and was slightly higher against the Indonesian rupiah at 277.1/277.6, up from 277.2/277.6 previously.
However, the local currency remained flat against the Philippine peso at 7.48/7.49, unchanged from the previous close, and slid against the Thai baht to 12.9015/12.9303 from 12.8780/8933. – October 29, 2024