Ringgit opens higher against US dollar on Fed posture

Ringgit opens higher against US dollar on Fed posture

KUALA LUMPUR,. The ringgit opened higher today backed by better interest from investors as the US Federal Reserve indicated a neutral interest rate hike next year.

At 9am, the ringgit stood at 4.1935/1975 versus the US dollar from 4.1980/2020 yesterday.

A dealer said that the comment by US Fed Chairman Jerome Powell’s calmed investors who anxiously waited n the sidelines to see if there would be another round of interest rate hike.

“For now, the market sentiment has improved, but the real push for emerging markets is still the G20 summit this weekend,” he said, adding that the prolonged trade tension between the United States and China had affected the trade of these countries.

A clear direction on what would happen next relies on the talks between President Donald Trump and President Xi Jinping.

Meanwhile, the ringgit traded was traded lower against other major currencies.

It decreased against the Singapore dollar to3.0525/0565 from yesterday’s close of 3.0464/0498, declined against the yen to 3.6921/6963 from 3.6902/6941 and depreciated against the euro to 4.7663/7713 from 4.7353/7403 yesterday.

It also slipped versus the British pound to 5.3777/3833 from 5.3571/3626 yesterday. — Bernama