The ringgit opened unchanged against the US dollar
BERNAMA
22/10/2024
At 8.10am, the local currency was at 4.3045/3200 against the US dollar from 4.3045/3100 at Monday's close. - Decorative pictures
KUALA LUMPUR: The ringgit was unchanged against the United States (US) dollar at the open on Tuesday following cautious sentiment on the economic outlook as some investors turned to safe-haven assets, an economist said.
At 8.10am, the local currency was at 4.3045/3200 against the US dollar from 4.3045/3100 at Monday's close.
Bank Islam Malaysia Bhd's Chief Economist, Mohd Afzanizam Abdul Rashid, said the US dollar strengthened when the US Federal Reserve (Fed) was expected to take a gradual approach in easing monetary policy.
"Federal Reserve Bank of Minneapolis President Neel Kashkari thinks interest rate cuts may continue at a slower pace in the coming quarter as the Fed moves toward a neutral rate. Meanwhile, ongoing tensions in the Middle East have caused crude oil prices to continue to rise.
"As a result, the US Dollar Index (DXY) rose to the highest level of 104,012 points, indicating strong demand for the US dollar," he told Bernama.
While expectations for the ringgit traded flat in the current demand environment for the US dollar, he said Malaysia's positive growth prospects, coupled with its commitment to fiscal consolidation, provided a strong case for a stronger ringgit going forward.
"Malaysia's preliminary forecast of Gross Domestic Product (GDP) for the third quarter, which reached 5.3 percent, shows that the country is expected to record strong growth this year and has the potential to record better growth in the future," he said.
Meanwhile, the ringgit is higher against several major currencies.
The local currency rose against the Japanese yen to 2.8579/8685 from 2.8685/8724 on Monday and rose against the British pound to 5.5890/6091 from 5.6040/6112.
It also rose against the euro to 4.6553/6721 from 4.6687/6746 at Monday's close.
In the meantime, the ringgit traded with a mixed performance compared to the currencies of ASEAN countries.
It rose against the Thai baht to 12.8397/12.8948 from 12.8719/8945 and rose against the Singapore dollar to 3.2692/2814 from 3.2776/2821 while the ringgit was unchanged against the Indonesian rupiah at 277.6/278.7 from 277.6/278.1 previously and unchanged against the Philippine peso at 7.48 /7.51 compared to 7.48/7.49 when it closed on Monday. - BERNAMA
