The ringgit opened higher against the US dollar in early trade today, in line with the decline in the US Dollar Index (DXY) as traders took a cautious approach ahead of the release of several important US economic data, including the labour market and consumer confidence.
At 10:07 am, the ringgit was at RM4.0670, up 0.44% since it opened early Tuesday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US dollar was still at a relatively high level due to the absence of major economic data that could change market sentiment. Market restrictions
He said the DXY was currently at 101.10 points, down 0.25 percent from its previous close.
According to him, the ringgit is expected to trade in a range of 4.06 to 4.08 against the US dollar while investors await fresh clues from US economic data.
He also explained that the Job Openings and Labour Turnover Survey (JOLTS) and Conference Board Consumer Confidence reports will be released tonight, with consumer confidence in the US expected to improve in June.
In the opening session, the ringgit was mostly traded stronger against major global currencies.
However, the ringgit weakened against the British pound to 5.3810/3975 from 5.3767/3839 at yesterday's close.
On the other hand, the local currency rose against the euro to 4.6363/6506 from 4.6383/6446, in addition to strengthening against the Japanese yen to 2.5073/5151 from 2.5128/5164.
Against regional currencies, the ringgit's performance was mixed.
The ringgit strengthened against the Singapore dollar to 3.1406/1505 from 3.1445/1490, was little changed against the Indonesian rupiah at 227.4/228.2 from 227.8/228.3, and remained unchanged against the Philippine peso at 6.63/6.66 from 6.65/6.66.
Meanwhile, the ringgit also rose against the Thai baht to 12.1966/2412 from 12.2199/2412.
