Ringgit opens at 3.9200 against US dollar, higher against most major currencies

KUALA LUMPUR, May 12 — The ringgit opened higher against a basket of major currencies, including the US dollar, ahead of the release of key United States (US) economic data later tonight that could reinforce expectations for the US Federal Reserve (Fed) to keep interest rates unchanged, said an analyst.

At 8am, the local unit inched up to 3.9200/9300 against the greenback, compared with yesterday’s close of 3.9220/9260.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US consumer price index (CPI) for April will be announced tonight, with headline and core CPI expected to increase by 3.7 per cent (March: 3.3 per cent) and 2.7 per cent (March: 2.6 per cent), respectively.

“Hence, the Fed may keep the rate steady while the odds for an interest rate cut this year would stay low.

“As such, the ringgit is expected to remain in sideways trading mode in the near term as the geopolitical risks remain heightened with a high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping set to take place this week,” he told Bernama.

At the opening, the ringgit traded mostly higher against a basket of major currencies.

It appreciated against the Japanese yen to 2.4925/4990 from 2.4955/4983 at Monday’s close and strengthened versus the British pound to 5.3312/3448 from 5.3331/3383 yesterday, but eased against the euro to 4.6162/6280 from 4.6150/6197 previously.

At the same time, the local currency was traded mixed against regional peers.

It was up against the Singapore dollar to 3.0883/0964 from 3.0887/0921 at the close yesterday, and gained against the Indonesian rupiah to 225.1/225.7 from 225.2/225.5 previously. 

However, the ringgit was almost flat against the Philippine peso to 6.41/6.43 from yesterday’s close of 6.41/6.42 and weakened versus the Thai baht to 12.1374/1759 from 12.0900/1083 previously. — Bernama