Ringgit higher against US dollar in early trade

The ringgit was slightly higher against the US dollar in early trade on Monday amid cautious sentiment ahead of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Oct 27-28.

At 8.02am, the ringgit edged up to 4.0815/4.0870 against the greenback from Friday’s close of 4.0835/4.0875.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) was seen rising 0.2% while the US Treasury yields were also higher.

“Hence, market sentiment will continue to be guarded with Brent crude oil prices remaining elevated at US$116 per barrel with the ongoing war in the Middle East likely to affect global crude oil supplies. As such, expect the ringgit to continue its narrow range trade today,” he noted.

The ringgit traded mostly higher against a basket of major currencies at the opening.

It fell vis-a-vis the euro to 4.5790/4.5852 from 4.5735/4.5780, higher versus the Japanese yen to 2.6020/2.6057 from Friday’s close of 2.6076/2.6103 and advanced against the British pound to 5.4602/5.4676 from 5.4633/5.4687.

Meanwhile, the ringgit performed mixed against its Asean peers.

It gained versus the Thai baht to 12.0865/12.1086 from 12.0985/12.1154 at Friday’s close and appreciated against the Singapore dollar to 3.1937/3.1982 from Friday’s 3.1952/3.1986.

The domestic unit was almost flat against the Indonesian rupiah at 225.7/226.1 from 225.8/226.1 and unchanged at 6.42/6.43 vis-a-vis the Philippine peso.