KUALA LUMPUR, March 7 — The ringgit opened marginally higher against the US dollar today as the greenback took a breather following a small pullback in Treasury yields yesterday and ahead of the United States (US) Federal Reserve’s (Fed) Semiannual Monetary Report to Congress, said an analyst.
At 9am, the local note rose to 4.4740/4795 versus the greenback from Monday’s closing of 4.4760/4800.
Bank Muamalat Malaysia Bhd head of economics, market analysis, and social finance Mohd Afzanizam Abdul Rashid said today’s trade is expected to be muted as market participants would want to adopt a wait-and-see attitude ahead of Fed chairman Jerome Powell’s testimony scheduled for today and tomorrow.
“Obviously, markets are awaiting for more clues as the Fed is likely to demonstrate its resolve to maintain a super-tight monetary policy stand.
“In respect of monetary policy action, the Reserve Bank of Australia (RBA) is likely to deliver a 25-basis point hike in the cash rate. Again, we believe the ringgit is likely to trade within the range of RM4.47 to RM4.48 against the US dollar,” he told Bernama.
The ringgit traded mixed against a basket of major currencies.
The local unit firmed against the British pound to 5.3786/3853 from 5.3842/3890 at Monday’s close and gained versus the Japanese yen to 3.2875/2921 from 3.2895/2927, but depreciated vis-a-vis the euro to 4.7778/7837 from 4.7575/7618 previously.
However, the local note traded higher against some Asean currencies.
It gained versus the Singapore dollar to 3.3244/3290 from 3.3259/3294 yesterday and improved against the Philippine peso to 8.13/8.15 from 8.16/8.17.
The ringgit also increased against the Indonesian rupiah to 292.4/293.0 from 292.5/293.0 at the previous close and advanced vis-a-vis the Thai baht to 12.9303/9356 from 12.9626/9810.