Ringgit higher against US dollar in early trade

KUALA LUMPUR: The Malaysian ringgit experienced a slight increase against the US dollar during early trading on Monday, as investors maintained a cautious outlook ahead of the US Federal Reserve's Federal Open Market Committee (FOMC) meeting scheduled for October 27-28. At 8:02 am, the ringgit climbed to 4.0815/4.0870 against the US dollar, up from Friday's closing rate of 4.0835/4.0875.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the movement to the US Dollar Index (DXY) rising by 0.2%, with US Treasury yields also showing an uptick. He cautioned that market sentiment would remain cautious due to elevated Brent crude oil prices at US$116 per barrel and the ongoing conflict in the Middle East, which could impact global crude oil supplies.

The ringgit exhibited a mostly bullish trend against a range of major currencies at the start of the trading session. It slipped against the euro to 4.5790/4.5852, from 4.5735/4.5780, but rose versus the Japanese yen to 2.6020/2.6057, up from 2.6076/2.6103 the previous day. The ringgit strengthened against the British pound, moving from 5.4633/5.4687 to 5.4602/5.4676.

However, the performance was mixed when compared to its ASEAN counterparts. It appreciated versus the Thai baht to 12.0865/12.1086, up from 12.0985/12.1154, while it was almost unchanged against the Indonesian rupiah at 225.7/226.1, and remained steady at 6.42/6.43 against the Philippine peso.