Kuala lumpur: The ringgit opened higher against the US dollar today, buoyed by improved market sentiment following optimistic remarks by Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour and expectations of a possible shift in the United States (US) Federal Reserve policy.
According to BERNAMA News Agency, at 8 am, the local currency climbed to 4.0880/0940 against the greenback, compared to the previous day's closing of 4.0885/0930. Analysts attributed the improved sentiment to Abdul Rasheed's statement that Malaysia's economy remains on track to grow by 4.0-5.0 percent, likely towards the upper end of the range, with manageable inflation expected in 2026 despite the energy supply shock. He highlighted that Malaysia's strong economic fundamentals, reform agenda, and commitment to sound economic management have equipped the government to respond effectively to economic shocks.
Furthermore, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the ringgit is anticipated to trade cautiously ahead of the US Federal Open Market Committee (FOMC) decision, expected to hover around RM4.08-RM4.09 against the US dollar. He pointed out that the US Conference Board Consumer Confidence Index reported a lower-than-expected figure of 90.8 points in July, against consensus estimates of 92.4 points. This development led to a decline in the two- and 10-year US Treasury yields by four basis points to 4.29 percent and 4.61 percent, respectively, suggesting that the US Federal Reserve might keep the interest rate steady in the near term.
Meanwhile, the ringgit exhibited mixed performance against a basket of major and regional currencies at the opening. It appreciated against the Japanese yen, inching up to 2.4945/4983 from 2.4948/4976 at the close on Tuesday. However, it weakened against the euro, dropping to 4.6538/6606 from 4.6429/6480 yesterday, and depreciated versus the British pound to 5.4305/4385 from 5.4287/4347 previously. Against regional currencies, the ringgit fell against the Singapore dollar to 3.1625/1675 from 3.1603/1640 yesterday and depreciated vis- -vis the Thai baht to 12.1775/2016 from 12.1494/1681 previously. It traded with little change against the Indonesian rupiah at 226.0/226.5 from 226.0/226.4 at Tuesday's close and remained flat vis- -vis the Philippine peso at 6.63/6.64 yesterday.