The ringgit opened higher against the US dollar on Wednesday, supported by easing crude oil prices and hopes of progress in geopolitical tensions, Bernama reported.
At 8am, the ringgit rose to 4.0680/0765 against the greenback from Tuesday’s close of 4.0730/0775.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said prevailing crude oil prices were supportive of the foreign exchange market, with Brent crude hovering below US$100 a barrel at US$99.25.
“The meeting between the United States (US) and Iranian officials during the United Nations General Assembly was described as ‘very good’ according to US President Donald Trump, raising hope for some progress towards a peace deal, although it remains fluid.
“Meanwhile, there was no clear indication from the US Federal Reserve officials on the direction of monetary policy,” he told Bernama.
Mohd Afzanizam said Federal Funds futures contracts showed the odds of rate hikes in October and December were above 50%, suggesting markets were pricing in two more rate hikes this year.
As a result, he expected the ringgit to remain in a narrow trading range today.
The local note also strengthened against a basket of major currencies at the open.
It gained against the euro to 4.6566/6664 from 4.6705/6757 on Tuesday, while advancing against the British pound to 5.4275/4389 from 5.4452/4512.
The ringgit also appreciated against the Japanese yen to 2.5830/5886 from 2.5958/5988 previously.
Against its ASEAN peers, the ringgit was mostly higher.
It strengthened against the Singapore dollar to 3.1901/1970 from 3.1955/1993 at Tuesday’s close and gained against the Thai baht to 12.2826/3142 from 12.2847/3035.
The local note also edged up against the Indonesian rupiah to 227.4/228.0 from 227.7/228.0, but slipped slightly against the Philippine peso to 6.48/6.50 from 6.49/6.50.
