Ringgit opens higher against major currencies, eases vs US dollar

The Malaysian ringgit opened higher against major currencies on Thursday, however, it weakened against the US dollar due to a moderate slowdown in the much-anticipated US consumer price index (CPI). By 8am, the local currency slipped to 4.0850/4.0950 against the greenback, down from yesterday's close of 4.0835/4.0875. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid pointed out that the US CPI inflation rate moderated slightly to 3.4% in July from 3.5% the previous month.

The 10-year US Treasury yields fell below 4.70%, indicating a decrease in the inflation premium, while the two-year note yielded one basis point lower at 4.20%, hinting that the Federal Reserve may not rush to raise interest rates anytime soon. Rashid also mentioned that concerns over the reopening of the Straits of Hormuz remained minimal, potentially allowing the ringgit to perform well.

At the opening, the ringgit was higher compared to a basket of major currencies, gaining against the Japanese yen, euro, and British pound. However, the local note was mixed against regional currencies, showing slight gains against the Thai baht but easing against the Singapore dollar. The ringgit remained relatively stable against regional currencies, with no significant fluctuations.