The ringgit opened slightly higher against the US dollar on Tuesday as investors remained cautious ahead of several major central bank meetings scheduled this week, an economist said.
At 8am, the ringgit stood at 4.0705/0775 against the US dollar, compared with Monday’s close of 4.0735/0770.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market attention was focused on the upcoming US Federal Open Market Committee (FOMC) meeting and the Bank of Japan’s (BoJ) monetary policy decision.
“Therefore, the ringgit is expected to remain cautious.
“Based on movements in the bond market, there are indications that the US Federal Reserve (Fed) is expected to raise interest rates by 25 basis points,” he told Bernama.
Afzanizam said the yields from recent US Treasury bill auctions for three- and six-month bills had risen to 3.97% and 4.06%, respectively, from 3.80% and 3.89% previously.
He also noted that Brent crude was trading at around US$105.68 a barrel, while Saudi Arabia’s key East-West oil pipeline was expected to take several weeks to resume operations.
The potential supply shortage could put further upward pressure on global crude oil prices, he said.
“As such, the ringgit is expected to trade within a narrow range today,” he said.
At the opening, the ringgit traded mixed against major currencies.
It strengthened slightly against the euro to 4.7006/7087 from 4.7008/7049 on Monday, but weakened against the yen to 2.6362/6409 from 2.6355/6380. It also slipped slightly against the British pound to 5.4952/5046 from 5.4931/4978 previously.
Against other ASEAN currencies, the ringgit also traded mixed.
The local currency strengthened against the Singapore dollar to 3.2041/2101 from 3.2055/2085, the Indonesian rupiah to 230.3/230.8 from 230.5/230.8, and the Philippine peso to 6.47/6.49 from 6.48/6.49.
However, it weakened against the Thai baht to 12.2476/2742 from 12.2445/2598.
