Ringgit Buoys on Domestic Sentiment, Eyes FOMC Rate Hike
The Malaysian ringgit has started the week on a strong note against the US dollar, despite external factors that could exert downward pressure on the currency. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, market sentiment remains cautious ahead of the FOMC meeting scheduled for July 28-29.
Dr Afzanizam expects a rate hike to be more likely, which would support the US dollar. The ringgit could also face upward pressure on inflation due to elevated oil prices, influencing the Federal Funds Rate. As such, trading in the ringgit is expected to remain cautious today.
The local currency opened at 4.0830/0930 against the greenback, a slight strengthening from Friday's close of 4.0885/0935. Meanwhile, it traded mostly higher against a basket of major currencies at the opening, but weakened against the British pound and Thai baht.
Dr Afzanizam also expects the ringgit to trade between RM4.09 and RM4.10 against the US dollar today.