Ringgit gains against US dollar as Malaysian rate decision approaches
An economist said an unchanged overnight policy rate of 2.75 per cent could support the currency, which traded mixed against regional peers.
The ringgit began trading at 4.0720/0800 against the US dollar at 8am, strengthening from the previous close of 4.0745/0790, as attention turned to Bank Negara Malaysia’s forthcoming monetary policy meeting.
Keeping the overnight policy rate at 2.75 per cent could help the Malaysian currency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama. He expected the ringgit to remain supported.
Afzanizam noted that the US dollar index had fallen to 102.127 points, a decline of 0.19 per cent, after the Federal Open Market Committee kept its benchmark interest rate at 3.75 per cent to four per cent. He characterised the Federal Reserve’s approach to price stability as guarded while economic growth was considered robust.
The ringgit lost ground against most major currencies at the opening. Its pound quotation weakened from 5.4130/4190 to 5.4268/4374, while its euro rate moved from 4.5337/5387 to 4.5427/5516. Against the yen, however, it strengthened from 2.5812/5843 to 2.5798/5851.
Regional currency movements were mixed: the ringgit improved from 224.0/224.4 to 223.9/224.4 against the Indonesian rupiah and was unchanged at 6.36/6.37 against the Philippine peso. It weakened from 3.1775/1813 to 3.1785/1850 against the Singapore dollar and from 12.0726/0902 to 12.0759/1068 against the Thai baht.
