The ringgit opened marginally higher against the US dollar on Tuesday as markets continued to monitor the United States (US) Federal Reserve’s (Fed) interest rate direction, according to Bernama.
At 8am, the local currency stood at 4.0815/0880 against the greenback, improving from Monday’s closing level of 4.0825/0875.
However, the ringgit traded weaker against most major currencies except the Japanese yen and Thai baht during the early session.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors remained focused on the Fed’s next moves, while the resilience of the US services sector was expected to continue providing support for the US dollar.
“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.
Against major currencies, the ringgit weakened against the euro to 4.6696/6771 from 4.6543/6640 at Monday’s close, while it declined against the British pound to 5.4668/4755 from 5.4336/4449.
The local note, however, strengthened against the Japanese yen, rising to 2.5179/5221 from 2.5203/5257 previously.
The ringgit also traded mostly lower against regional currencies.
It slipped against the Singapore dollar to 3.1593/1648 from 3.1500/1571, eased against the Indonesian rupiah to 226.8/227.2 from 226.5/227.1 and weakened against the Philippine peso to 6.63/6.65 from 6.62/6.64.
The ringgit gained ground against the Thai baht, improving to 12.2545/2807 from 12.2627/2942 previously.
