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 remained essentially unchanged against the US dollar, according to economist Afzanizam Rashid. The local currency started at 4.0585/4.0675 against the greenback, slightly lower than Monday's close of 4.0585/4.0630. Rashid explained that if the likelihood of a September US interest rate hike diminishes, it would bolster emerging market currencies, such as the ringgit.
Nevertheless, he noted the Malaysian economy is in a favorable situation, with robust GDP growth and stable inflation rates. July's consumer price index (CPI) data revealed headline and core inflation both decreased to 1.8%. Consequently, Rashid anticipates the ringgit to fluctuate between 4.06 and 4.08 against the US dollar throughout the day.
At the market opening, the ringgit exhibited strength against several currencies, including the Japanese yen, British pound, euro, Singapore dollar, Thai baht, Philippine peso, and Indonesian rupiah.
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.
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