Ringgit slightly lower at opening

The ringgit trades higher against other major currencies today.

KUALA LUMPUR: The ringgit opened slightly lower against the US dollar today as investors waited on a widely expected US rate cut to give a clear lead.

At 9.05am, the ringgit stood at 4.1120/1170 against the US dollar from Friday’s close of 4.1100/1130.

A dealer said market players are cautiously waiting for the US second quarter gross domestic product (GDP) data to be released at the end of the week, which plays a crucial role for the Federal Reserve as it looks to potentially cut rates.

In addition, rising tensions in the Middle East weighed on sentiment in the local market.

Locally, he said the June consumer price index (CPI) will also be released soon and is expected to tick higher, despite overall headline inflation for the year likely to remain manageable.

In May, the CPI grew 0.2% over the same month last year, led by a price hike in the housing, water, electricity, gas and other fuels group.

Overall, the ringgit traded higher against a basket of major currencies.

It rose against the Singapore dollar to 3.0202/0243 from Friday’s close of 3.0236/0269 and strengthened against the yen to 3.8085/8142 from 3.8165/8207.

The local currency was also better versus the British pound at 5.1408/1475 from 5.1474/1519, and increased against the euro to 4.6091/6152 from 4.6184/6234.