Ringgit opens lower vs dollar, mixed against peers

 The local note eases to 3.9565/3.9630 amid cautious positioning after the US Federal Reserve’s rate decision.

KUALA LUMPUR:

 The ringgit opened lower against the US dollar and was mixed against other currencies, as support from firmer oil prices was offset by broad dollar strength and cautious positioning following the US Federal Reserve’s (Fed) rate decision.

At 8.04am, the domestic unit eased against the greenback to 3.9565/3.9630, from 3.9495/3.9540 at Wednesday’s close.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the Fed was inclined to keep rates steady, as economic activity continued to expand at a solid pace despite slower job growth.

At its third meeting of the year, the Federal Open Market Committee maintained the target range for the federal funds rate at 3.50% to 3.75%.

“With the sharp spike in crude oil prices, the ringgit is likely to weaken today, with the US dollar/ringgit pair potentially attempting to breach RM3.96,” Afzanizam noted.

At the opening, the ringgit was traded mixed against a basket of major currencies, and against its Asean peers.

It rose slightly against the Japanese yen to 2.4700/2.4744 from 2.4709/2.4739 on Wednesday, but weakened against the British pound to 5.3381/5.3469 from 5.3330/5.3391 and slipped against the euro to 4.6236/4.6312 from 4.6197/4.6250.

It edged down against the Singapore dollar to 3.0905/3.0659 from 3.0909/3.0946 at Wednesday’s close, but strengthened against the Thai baht to 12.0765/12.1022 from 12.0791/12.0980.

The ringgit eased against the Indonesian rupiah to 228.3/228.8 from 227.9/228.3 and fell against the Philippine peso to 6.42/6.44 from 6.41/6.42. - FMT