Ringgit opens higher against weakening US dollar

KUALA LUMPUR: The ringgit opened higher against the weakening greenback today as the latest US economic data reinforced expectations for an interest rate cut in the United States, an economist said.

At 8 am, the local note appreciated to 4.3305/3380 versus the greenback from yesterday's close of 4.3330/3370.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) slipped 0.31 per cent to 101.366.

The two-year US Treasury note was unchanged at 3.64 per cent as US producer price index (PPI) came in lower than expected at 1.7 per cent against consensus estimates of 1.8 per cent. Additionally, US jobless claims were slightly higher-than-anticipated at 230,000 versus market consensus of 227,000 as more Americans claimed unemployment benefits.

"It appears that markets are running back and forth as to the quantum of the (US) rate cut next week. As such, we expect the ringgit to be well supported in light of possible monetary easing when the US Federal Open Market Committee members meet and decide on Sept 17-18," Afzanizam told Bernama.

In early trade, the ringgit was traded lower against a basket of major currencies.

It went down versus the euro to 4.7973/8056 from 4.7724/7768 at Thursday's close, fell against the British pound to 5.6864/6962 from 5.6550/6602 and slipped vis-a-vis the Japanese yen to 3.0609/0666 from 3.0364/0395.

The ringgit traded mixed against ASEAN currencies.

It declined versus the Thai baht to 12.9640/9931 from 12.8351/8527 and depreciated vis-a-vis the Singapore dollar to 3.3291/3351 from 3.3190/3224 yesterday.

It was slightly higher against the Indonesian rupiah at 280.4/281.1 from 280.6/281.0 and was flat against the Philippine peso at 7.71/7.73.

-- BERNAMA

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