Ringgit opens higher against major currencies, slightly lower vs US dollar

KUALA LUMPUR: At the opening of Thursday's trading session, the Malaysian ringgit displayed varied performance against major currencies, opening higher against most but slightly lower against the US dollar, according to the latest figures from the market. A stronger-than-expected US economic data and forecasts of additional interest rate hikes by the US Federal Reserve contributed to the greenback's ascent.

The ringgit depreciated to 4.0835/4.0910 against the US dollar from yesterday's close of 4.0780/4.0825. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid highlighted that expectations of further Fed rate increases this year bolstered the US Dollar Index, which rose 0.49% to 101.096. Additionally, positive business sentiment further supported this trend.

The US Composite Purchasing Managers' Index Output rose to 58.4 points in September, marking its highest level in 62 months. Moreover, remarks from US Fed governor Michael Barr suggested the Fed may resume its interest rate hike cycle this year. Analysts predict the ringgit may trade between RM4.08 and RM4.10 against the US dollar today.

The ringgit opened higher against a basket of major currencies, including the euro, British pound, and Japanese yen. However, its performance against regional currencies varied, appreciating against the Singapore dollar and Thai baht, but weakening against the Indonesian rupiah and remaining stable against the Philippine peso.