Ringgit opens slightly higher against resilient greenback

KUALA LUMPUR: The ringgit was slightly higher against the US dollar in early trade today while steady demand continued to provide support for the greenback, an analyst said. Read full story

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KUALA LUMPUR: The ringgit was slightly higher against the US dollar in early trade today while steady demand continued to provide support for the greenback, an analyst said. At 9 am, the ringgit stood at 4.7050/7110 versus the US dollar compared to yesterday's close of 4.

7055/7105. Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index is still holding up, signalling a resilient demand for the greenback amid hopes of interest rate cuts. Earlier today, Federal Reserve (Fed) chair Jerome Powell's testimony to the US Congress suggested that the Fed is on track to cut rates should economic data warrant such a response.



"Cutting the rates too little and too late could risk slowing the economy while he admitted inflation is not only a risk that the Fed is currently facing," Mohd Afzanizam told Bernama. On the home front, he said investors will be monitoring the Bank Negara Malaysia's (BNM) monetary policy committee meeting for their decision on the overnight policy rate (OPR) due on Thursday. "We believe the BNM will keep the rate unchanged at 3.

00 per cent. Should the Fed start to cut the rates in September, it will narrow the gap between the Fed Fund Rate and the OPR. "This should be positive for ringgit towards the later part of the year," he added.

Meanwhile, the ringgit traded higher against a basket of major currencies. The local note appreciated against the Japanese yen to 2.9140/9179 from Tuesday’s close of 2.

9219/9252, moved highe.