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Ringgit opens stronger against US dollar

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Kuala Lumpur
– The ringgit opened stronger against the US dollar today, in line with the regional currencies, on the weakness of the greenback amid unanticipated events at the US Federal Reserve.

At 9 am, the local unit traded at 4.1865/1895 versus the greenback from yesterday’s 4.2080/2110.

A dealer said Asian currencies rose as investors saw the resignation of US Federal Reserve Vice-Chair Stanley Fischer as a sign that the US central bank will be even more cautious about raising interest rates again, implying further weakening of the dollar.

“The unanticipated event caused wild swings in foreign exchange markets,” he said.

On the local front, he said the ringgit’s strengthening was lifted by the country’s strong economic fundamentals and optimism on the nation’s economic outlook.

He said Bank Negara Malaysia’s decision yesterday to maintain interest rates at three per cent as economic growth strengthened and inflation moderated reflected the central bank’s upbeat tone of the nation’s health and Asia’s economic performance this year.

All these factors reinforced investors’ bullish sentiment towards Malaysia as a whole.

The local note was traded higher against a basket of other major currencies.

It advanced against the Singapore dollar to 3.1240/1274 from Thursday’s close of 3.1286/1320 and appreciated against the yen to 3.8621/8659 from 3.8645/8683, yesterday.

The local unit firmed against the British pound to 5.4847/4899 from yesterday’s 5.5011/5055 and strengthened against the euro to 5.0359/0408 from 5.0408/0456 on Thursday. – Bernama