Ringgit higher against US dollar in early trade

KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Monday, as cautious market sentiment loomed over the upcoming Federal Open Market Committee (FOMC) meeting scheduled for October 27-28. At 8:02 am, the ringgit reached 4.0815/4.0870 against the greenback, marking an improvement from Friday's close of 4.0835/4.0875.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed this slight gain to the US Dollar Index (DXY) rising by 0.2%, alongside higher US Treasury yields. He cautioned that the market sentiment would remain cautiously optimistic, given that Brent crude oil prices remained elevated at US$116 per barrel, while the ongoing conflict in the Middle East could disrupt global crude oil supplies.

Consequently, analysts expect the ringgit to fluctuate within a narrow range throughout the day. The domestic currency showed mixed performances against other major currencies. It weakened versus the euro, trading between 4.5790/4.5852 compared to Friday's range of 4.5735/4.5780. The ringgit strengthened against the Japanese yen, moving from 2.6076/2.6103 to 2.6020/2.6057.

It also appreciated compared to the British pound, rising from 5.4633/5.4687 to 5.4602/5.4676. However, the ringgit traded mixed against its Asean counterparts. It gained against the Thai baht, increasing from 12.0985/12.1154 to 12.0865/12.1086, and strengthened against the Singapore dollar, moving from 3.1952/3.1986 to 3.1937/3.1982.

The domestic unit remained relatively stable against the Indonesian rupiah at 225.7/226.1, unchanged from Friday, and remained unchanged against the Philippine peso at 6.42/6.43.