Ringgit opens higher at 3.8850 against US dollar

 The US dollar index slipped 0.17% to 97.675, reflecting continued softness in the greenback.

KUALA LUMPUR: The ringgit opened firmer against the US dollar on Thursday, underpinned by Malaysia’s positive economic outlook and a softer greenback.

At 8am, the local currency strengthened to 3.8850/3.8960 against the dollar from yesterday’s close of 3.8900/3.8955.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the government is reviewing this year’s gross domestic product growth forecast, currently projected at 4.0% to 4.5%.

“Given last year’s performance, the revision is likely to be upward. That in itself signals a positive outlook,” he told Bernama.

He added that monetary policy should remain supportive, with the central bank widely expected to keep interest rates unchanged.

Meanwhile, the US dollar index slipped 0.17% to 97.675, reflecting continued softness in the greenback.

Afzanizam noted that the dollar-ringgit pair had hovered near its immediate support level of RM3.8722 on Wednesday before trading around RM3.8855 in the afternoon session.

“The ringgit is likely to remain well supported in the near term, given the softer US dollar outlook and Malaysia’s positive economic prospects,” he said.

At the open, however, the ringgit traded lower against a basket of major currencies.

It eased against the Japanese yen to 2.4878/2.4950 from 2.4848/2.4885 at yesterday’s close, slipped versus the British pound to 5.2669/5.2818 from 5.2585/5.2659 and fell against the euro to 4.5901/4.6031 from 4.5855/4.5920.

The ringgit was mixed against its Asean peers.

It rose against the Thai baht to 12.4988/12.5418 from 12.5121/12.5374, strengthened against the Indonesian rupiah to 231.2/232.0 from 231.5/231.9 and edged up versus the Philippine peso to 6.75/6.78 from 6.76/6.78.

However, it slipped against the Singapore dollar to 3.0760/3.0850 from 3.0736/3.0782. - FMT