Ringgit opens higher vs US dollar, major currencies

KUALA LUMPUR: The ringgit opened higher against the US dollar and most major currencies on Thursday as the greenback remained under pressure ahead of next week's Federal Open Market Committee (FOMC) meeting.

At 8am, the ringgit was 4.0780/0835 against the greenback compared with Wednesday's close of 4.0790/0825.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remains cautious ahead of next week's FOMC meeting, with investors closely monitoring inflation.

He also said crude oil prices rose after the latest attack on a Saudi oil field, with Brent crude currently hovering around US$108 per barrel.

Mohd Afzanizam added that US crude oil inventories fell by 3.06 million barrels in the week of Oct 16, which may suggest that the US government is attempting to stabilise their fuel prices.

"All in all, market sentiment remains cautious as the FOMC meeting next week will be closely monitored, especially on their stance towards inflation. As such, the ringgit will continue to trade in range today," he told Bernama.

At the opening, the ringgit traded mostly higher against a basket of major currencies.

It strengthened versus the Japanese yen to 2.5784/5820 from 2.5790/5814 at Wednesday's close and gained against the British pound to 5.4621/4694 from 5.4642/4689.

However, the local note edged down vis-a-vis the euro to 4.5812/5874 from 4.5770/5810

The ringgit performed mixed against its Asean peers.

It gained vis-a-vis the Philippine peso to 6.43/6.45 from 6.44/6.45 at Wednesday's close but was flat against the Indonesian rupiah at 226.2/226.7.

The local note eased against the Singapore dollar to 3.1929/1975 from 3.1917/1947 and fell versus the Thai baht to 12.1387/1623 from 12.1287/1434 at yesterday's close.