Ringgit opens higher against US dollar

KUALA LUMPUR: The ringgit opened higher against the US dollar amidst renewed buying interest for the domestic unit.

At 9.18 am, the local currency rose to 4.4550/4600 versus the greenback from Tuesday's close of 4.4570/4585

SPI Asset Management managing partner Stephen Innes expects the US dollar/ringgit pair to trade in an extremely tight range ahead of the United States (US) Federal Open Market Committee's decision on the US' economic policy later today.

"And while 75 basis points hike is priced in, the market remains divided on the US Federal Reserve's (Fed) forward guidance.

"If Fed chair Jerome Powell maintains his aggressive inflation-fighting stance, the ringgit could weaken against the backdrop of widening US dollar/ringgit interest rate differentials," he told Bernama.

Meanwhile, the local currency advanced against the Singapore dollar to 3.2069/3109 from Tuesday's close of 3.2104/2119, appreciated versus the Japanese yen to 3.2497/2536 from 3.2628/2644 yesterday and strengthened vis-a-vis the euro to 4.5183/5233 from 4.5341/5356 previously.

However, the ringgit fell versus the British pound to 5.3652/3712 from 5.3533/3551 yesterday.

-- BERNAMA