Ringgit opens slightly higher on mild demand

KUALA LUMPUR - The ringgit opened slightly higher against the US dollar this morning due to mild demand for the domestic note.

At 9 am, the local note rose to 4.6925/6970 against the greenback from yesterday’s close of 4.6940/6980.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the ringgit’s appreciation was predictable as the local note has been in an oversold position from the technical standpoint.

"But whether the slight appreciation can be sustained remains to be seen due to prevailing concerns over the United States (US) Federal Open Market Committee (FOMC) meeting to decide on the US interest rates,” he told Bernama.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.

It increased against the Japanese yen to 3.1766/1799 from 3.1776/1806 at Tuesday's close and climbed against the euro to 5.0139/0187 from 5.0160/0203 previously, but was slightly lower versus the British pound at 5.8135/8191 from 5.8126/8175 yesterday.

At the same time, the local note also traded mostly higher against other Asean currencies.

It appreciated vis-à-vis the Singapore dollar to 3.4385/4420 from 3.4436/4468 at yesterday’s close and strengthened versus the Thai baht to 13.0037/0208 from 13.0563/0718 previously.

It was also slightly better against the Indonesian rupiah at 305.0/305.5 from 305.1/305.6 on Tuesday and flat against the Philippines’ peso at 8.27/8.28 yesterday. - BERNAMA