The ringgit opened marginally higher against the US dollar on Wednesday as investors remained cautious ahead of the United States midterm election results and Bank Negara Malaysia’s (BNM) monetary policy decision.
At 8am, the local currency edged up to 4.0730/0795 against the greenback, compared with Tuesday’s closing rate of 4.0735/0775.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment was expected to remain cautious as investors monitored developments surrounding the US midterm elections.
He noted that the rising cost of living, particularly petrol prices, could become a key concern among American voters. Traders are also keeping a close watch on BNM’s Monetary Policy Committee meeting scheduled for Thursday.
Afzanizam expects the ringgit to trade within a narrow range as investors assess these developments.
Against other major currencies, the ringgit weakened against the euro to 4.5646/5719 from 4.5587/5631 at Tuesday’s close. It also slipped against the British pound to 5.4713/4800 from 5.4658/4712.
However, the local currency strengthened against the Japanese yen, with 100 yen quoted at 2.5702/5745 compared with 2.5762/5789 previously.
Against ASEAN currencies, the ringgit gained against the Singapore dollar to 3.1805/1861 from 3.1807/1841 at the previous close.
It also strengthened against the Thai baht to 12.0606/0888 from 12.0696/0858, the Indonesian rupiah to 224.2/224.7 from 224.3/224.6, and the Philippine peso to 6.41/6.43 from 6.42/6.43.
The market will continue to monitor the US midterm election developments and Thursday’s BNM policy decision for further direction.
The 8am opening figures were reported by Bernama, with coverage published by Free Malaysia Today and New Straits Times on Wednesday.
