KUALA LUMPUR, March 7 — The ringgit opened firmer against the US dollar today on improved sentiment ahead of the Monetary Policy Committee’s (MPC) announcement on the Overnight Policy Rate (OPR) later today.
At 9 am, the ringgit rose to 4.7145/7190 against the greenback compared with yesterday’s close of 4.7295/7350.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects some positive movement for the local note but remains guarded as the United States data is still flashing a resilient labour market.
“The ADP Employment change fell short of expectation as the final print came in at 140,000 in February versus consensus estimates of 149,000, this reading followed the 111,000 increase recorded in January,” he said.
He also pointed out that the US Dollar Index came in lower at 103.36 points as the Federal Reserve assured that the central bank will cut the benchmark rate although they might need to see some convincing evidence that inflation rate will move towards its two per cent goal.
Meanwhile, the ringgit was traded mostly higher against a basket of major currencies.
The local currency was better against the British pound at 6.0053/0111 from 6.0207/0277 on Wednesday, edged up versus the euro to 5.1397/1447 from 5.1438/1498 but slid vis-a-vis the Japanese yen to 3.1660/1692 from 3.1604/1643 previously.
At the same time, the ringgit traded higher against other Asean currencies.
It rose versus the Thai baht to 13.2337/2519 from Wednesday’s close of 13.2479/2704, appreciated against the Singapore dollar to 3.5241/5277 compared to 3.5268/5312, improved vis-a-vis the Indonesian rupiah to 300.1/300.6 from 301.1/301.6 and climbed against the Philippine peso to 8.45/8.46 from 8.46/8.48 yesterday.
— Bernama
