Ringgit Opens Higher Against Major Currencies, Eases Against US Dollar

The Malaysian ringgit opened higher against major currencies on Thursday, but eased slightly against the US dollar due to moderate inflation in the United States. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the US consumer price index (CPI) inflation rate has decreased to 3.4 per cent in July from 3.5 per cent a month ago.

At 8 am, the ringgit traded at 4.0850/0950 against the greenback, down from yesterday's close of 4.0835/0875. The local currency also climbed against several other major currencies, including the Japanese yen and the British pound.

However, Dr Afzanizam noted that worries over the reopening of the Straits of Hormuz remain elusive, which could mean a higher risk of inflation for Malaysia. As such, he expects the ringgit to oscillate around RM4.07 to RM4.09 against the US dollar today.