The ringgit weakened against the US dollar at Friday’s opening as investors remained cautious amid expectations that the US Federal Reserve (Fed) could tighten monetary policy at its December meeting.
At 8am, the local currency eased to RM4.0780/4.0840 against the greenback, compared with RM4.0765/4.0805 at Thursday’s close.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index continued to climb, reaching 103.198 points, amid expectations of a possible Fed rate hike next month.
He also noted that Brent crude oil prices rose 3.27% to US$95.79 a barrel, suggesting that inflationary pressures could remain elevated.
Afzanizam said traders largely overlooked signs of weakness in the US economy, including an increase in initial jobless claims to 200,000 last week and a 5.5% month-on-month contraction in existing home sales.
“Against this backdrop, the ringgit is expected to trade between RM4.07 and RM4.08 against the US dollar today,” he told Bernama.
Despite its weakness against the greenback, the ringgit strengthened against several other major currencies.
It appreciated against the euro to RM4.5054/4.5120 from RM4.5225/4.5269 at Thursday’s close, while gaining against the British pound to RM5.3952/5.4031 from RM5.4103/5.4156.
The local currency also strengthened against the Japanese yen, with 100 yen quoted at RM2.5503/2.5543 compared with RM2.5524/2.5551 previously.
Against ASEAN currencies, the ringgit gained against the Singapore dollar, trading at RM3.1684/3.1733 compared with RM3.1726/3.1760 at Thursday’s close.
It also appreciated against the Thai baht to RM12.0348/12.0629 from RM12.0678/12.0836.
Meanwhile, the ringgit was little changed against the Indonesian rupiah at RM223.5/224.0 compared with RM223.5/223.8 previously, and remained steady against the Philippine peso at RM6.40/6.41.
The opening rates were recorded at 8am on Friday, according to figures reported by Bernama.
