Ringgit opens higher against greenback in early session

KUALA LUMPUR: The ringgit appreciated against the US dollar in early trade on buying support today after the US Federal Reserve maintained its monetary policy, a dealer said.

At 9am today, the ringgit was quoted at 4.2350/2410 against the US dollar compared with 4.2485/2555 recorded at Wednesday’s close.

AmBank Research in a note today said the US dollar depreciated by 0.38%, marking a three-month low after the US Fed kept rates steady at 0.25% as expected.

“The Fed also pledged to keep rates at the present level and continue their asset purchase programme until the economy recovers from the Covid-19 pandemic,” it said.

Meanwhile, the research house expects the local note to trade between its support level of 4.2237 and 4.2364 while resistance is pinned at 4.2706 and 4.2804.

“Key focus of the day include the US’ May producer price index and the initial jobless claim as well as Malaysia’s April industrial production index,” it said.

At the opening, the ringgit was traded mostly higher against a basket of benchmark currencies, except against the yen, where it slightly fell to 3.9568/9636 from 3.9565/9641 on Wednesday.

The local note rose against the Singapore dollar to 3.0631/0690 from 3.0662/0723 yesterday, strengthened versus the euro at 4.8220/8305 from 4.8259/8342 and appreciated to 5.3935/4035 from 5.4177/4275 against the British pound.