Ringgit opens higher against US dollar ahead of key central bank meetings

KUALA LUMPUR, Sept 15 — The Malaysian ringgit opened higher against the US dollar on Monday, as investors maintained a cautious stance ahead of crucial central bank meetings scheduled for the week, according to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd. At 8 am, the local currency gained 0.5 sen to trade between 4.0705/0775 against the greenback, a slight improvement from yesterday's close of 4.0735/0770.

Dr Afzanizam attributed the market's focus to the forthcoming Federal Open Market Committee (FOMC) meeting and Bank of Japan (BoJ) policy decisions, noting that the ringgit is expected to remain cautious until these events unfold. He added that recent bond market movements indicated the US Federal Reserve may raise interest rates by 25 basis points, based on the upward trend in three- and six-month US Treasury bill yields.

Brent crude prices, currently around US$105.68 per barrel, and potential disruptions to the East-West pipeline in Saudi Arabia are also contributing to upward pressure on global oil prices, he said, which could further impact the ringgit's trading range. At the opening, the ringgit showed mixed performance against various currencies.

It strengthened against the euro to 4.7006/7087, weakened against the Japanese yen to 2.6362/6409, and fell slightly against the British pound to 5.4952/5046. The ringgit also experienced fluctuations against ASEAN currencies, gaining against the Singapore dollar to 3.2041/2101 and the Indonesian rupiah to 230.3/230.8, while slipping against the Philippine peso to 6.47/6.49.