Ringgit opens higher against major currencies, flat VS Greenback

KUALA LUMPUR: The ringgit opened higher against major currencies but remained flat against the US dollar amid renewed expectations of a possible US Federal Reserve (Fed) interest rate hike following stronger-than-expected inflation data.

At 8 am, the local currency traded at 4.0540/0590 against the greenback, unchanged from Tuesday's close of 4.0540/0580.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US inflation data had heightened concerns over further monetary tightening, with the US Consumer Price Index (CPI) rising 0.4 per cent month-on-month in October, above the consensus estimate of 0.3 per cent.

He said the prospect of higher interest rates also pushed the yield on the two-year US Treasury note up by 18 basis points to 4.74 per cent, while the US Dollar Index strengthened 0.57 per cent to 102.233 points.