Ringgit Opened Positive After FOMC Report, Fed Asks Market To Remain Calm


The ringgit traded stronger against the USD at Thursday's opening after the United States (US) annual inflation data recorded a decline for the May reading.

The market continues to evaluate the policy easing measures to be implemented by the Federal Reserve at the end of 2024 after evaluating the results of the FOMC meeting earlier this morning.

At exactly 10.30 am, the ringgit strengthened to a position of 4.7030, which is up by 0.25% against the US dollar, from which it closed at 4.7160.

Bank Muamalat Malaysia Bhd's economist, Dr Afzanizam Abdul Rashid said the Dollar Index (DXY) dropped below 105 points after the publication of the latest important data. The weakness of the world's currency giant dragged the market to believe in policy easing at the end of the year.

He also said that the ringgit will remain at a position of RM4.7000 throughout Thursday.

Meanwhile, the ringgit is trading low compared to the world's major currencies.

It was lower against the Japanese yen to 2.9999 from 2.9977 at Wednesday's close, down against the euro to 5.0863 from 5.0711 and the British pound to 6.0189.

Compared to the Asean region, the ringgit traded somewhat mixed as it was almost unchanged against the Indonesian rupiah at 288.5 and higher than the Philippine peso at 8.03.

However, it eased against the Singapore dollar to 3.4889 from yesterday's close and eased against the Thai baht at 12.8719 from 12.8529.