Ringgit opens higher against US dollar

KUALA LUMPUR: The ringgit opened higher against the US dollar as expectation of more rate cuts by the US Federal Reserve lifted market sentiment towards the local note.

At 9.02am, the local note was at 4.1820/1850 against the greenback from 4.1860/1890 at the close yesterday.

A dealer said the prospect of an additional rate cut by the US Federal Reserve is higher following the release of weaker-than-expected manufacturing and employment data.

“This fuelled market expectation that the Feds will reduce its rates at the upcoming policy meeting at the end of this month to prop up its growth rate. This, in turn, provided support for Asian currencies,” he added.

Meanwhile, the ringgit traded lower against other major currencies.

It declined against the Singapore dollar to 3.0318/0350 from 3.0287/0320 at close yesterday and fell against the yen to 3.9135/9174 from 3.9059/9102.

The local note depreciated against the euro to 4.5910/5947 from 4.5820/5870 and was lower against the British pound to 5.1635/1689 from 5.1408/1462.