Ringgit opens flat against US dollar amid mixed Fed signals

The local note stays at 4.2200/4.2250 amid market uncertainty over US growth and inflation priorities.

KUALA LUMPUR:

 The ringgit opened flat against the US dollar on Monday as traders remained cautious amid mixed signals from the US Federal Reserve officials on the interest rate outlook.

At 8.01am, the local note was at 4.2200/4.2250 similar to Friday’s close at 4.2200/4.2250.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said traders and investors remained divided on whether the Fed would prioritise growth or inflation, creating uncertainty that has limited the upside for emerging market currencies, including the ringgit.

He said the US dollar has also gained momentum, with the US Dollar Index (DXY) trading above the 98-point level.

“On that note, the ringgit is expected to trade within the RM4.22 to RM4.23 range today,” he added.

At the opening, the ringgit was lower against a basket of major currencies.

It eased to 2.8265/2.8301 against the Japanese yen from 2.8171/2.8206 at Friday’s close, slipped to 5.6599/5.6666 against the British pound from 5.6345/5.6412, and declined to 4.9416/4.9475 versus the euro from 4.9281/4.9340.

The local note was mostly lower against Asean currencies.

It fell to 3.2680/3.2721 against the Singapore dollar from 3.2630/3.2671 and depreciated to 13.0849/13.1081 against the Thai baht from 13.0587/13.1069 previously.

However, it traded unchanged against the Indonesian rupiah at 252.1/252.5 and the Philippine peso at 7.25/7.27 from Friday’s close. - FMT