Ringgit strengthens vs major currencies, little change against US dollar
The local note holds at 4.0585/4.0675 amid lower expectations of a September rate hike.
KUALA LUMPUR: The Malaysian ringgit opened higher against major currencies on Tuesday, but showed little change against the US dollar, according to an economist. At 8am, the local currency was at 4.0585/4.0675 against the US dollar, slightly improved from Monday's close of 4.0585/4.0630. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid explained that if the likelihood of a US interest rate hike in September decreases, this would boost emerging market currencies like the ringgit.
However, he noted that Malaysia's economy is in a favorable position as GDP growth is strong, while inflation rates remain stable. The latest consumer price index (CPI) data revealed that headline and core inflation both dropped to 1.8% in July. Rashid expects the ringgit to fluctuate between 4.06 and 4.08 (against the US dollar) for the rest of the day.
The local currency traded at higher levels against the Japanese yen, British pound, euro, Singapore dollar, Thai baht, Philippine peso, and Indonesian rupiah compared to the previous trading session.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
