Ringgit opens marginally higher against US dollar

The ringgit opened marginally higher against the greenback on Wednesday as investors remain cautious ahead of results from the US midterm elections and Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting tomorrow, said an analyst. 

At 8am, the local currency edged up to 4.0730/4.0795 against the US dollar from yesterday’s close of 4.0735/4.0775. 

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said market sentiment is expected to remain cautious as investors monitored developments surrounding the US midterm elections, with the rising cost of living, particularly petrol prices, likely to be a key concern among voters. 

“Today, all eyes will be on the US midterm elections as American citizens cast their votes. Higher cost of living, particularly gas prices, which remain above US$4 per gallon, especially during the election, is seen as a key deciding factor among voters.

“Not to mention, tomorrow’s BNM MPC decision will also be on the traders’ radar,” he told Bernama. 

Hence, the ringgit is likely to maintain a narrow range today, as market sentiment is expected to be cautious.

Against major currencies, the ringgit traded mostly lower but rose versus the Japanese yen to 2.5702/2.5745 from 2.5762/2.5789 at yesterday’s close. 

It fell against the euro to 4.5646/4.5719 from 4.5587/4.5631 and depreciated vis-a-vis the British pound to 5.4713/5.4800 from 5.4658/5.4712.

Meanwhile, the ringgit was higher against its Asean peers.

It appreciated versus the baht to 12.0606/12.0888 from 12.0696/12.0858 yesterday, inched up against the rupiah to 224.2/224.7 from 224.3/224.6, slightly higher vis-a-vis the Philippine peso to 6.41/6.43 from 6.42/6.43 previously, and improved against the Singapore dollar to 3.1805/3.1861 from the previous close of 3.1807/3.1841.