The ringgit opened higher against the US dollar on Wednesday as investors remained cautious ahead of the US Federal Reserve’s interest rate decision expected next month.
At 8am, the ringgit strengthened to 4.1570/1705 against the greenback, compared with Tuesday’s close of 4.1605/1660.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) dipped 0.04 per cent to 99.550 points, amid persistent uncertainty over the Fed’s next monetary policy move.
He noted that the latest labour market data—released after a 41-day US government shutdown—indicates continued weakness. Initial jobless claims rose to 232,000, exceeding consensus expectations of 223,000 and up from the previous week’s 219,000.
“Most Fed officials appear split on what they will decide in December,” he told Bernama.
Mohd Afzanizam added that the ringgit had recently corrected against the US dollar after briefly touching the RM4.12–RM4.13 range last week, before weakening again on Tuesday.
“We expect the ringgit to stabilise around RM4.14 to RM4.16 today as some technical indicators have moved into the neutral zone,” he said.
At the opening, the ringgit also traded higher against several major currencies. It strengthened against the yen to 2.6726/6815 from 2.6800/6838, appreciated against the euro to 4.8138/8294 from 4.8216/8280, and rose against the British pound to 5.4652/4830 from 5.4719/4791.
The local note was mixed against ASEAN currencies. It inched higher versus the Indonesian rupiah to 248.1/249.0 and improved against the Philippine peso to 7.04/7.07. However, it slipped against the Thai baht to 12.8330/8838 and was slightly weaker against the Singapore dollar at 3.1940/2049.
