The ringgit opened slightly stronger against the US dollar on Thursday as concerns over the direction of US monetary policy eased after statements by several Federal Reserve (Fed) officials on interest rates boosted market sentiment. Economy
At 10am, the ringgit was at RM4.0830, up 0.22% since it opened early Thursday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market attention was focused on the statement by new Fed Chairman Kevin Warsh at the European Central Bank (ECB) Forum, which hinted that the US central bank was in no hurry to raise interest rates.
He said Warsh's statement showed the Fed was still cautious in making decisions on interest rates, but at the same time remained committed to restoring price stability and controlling inflation.
He added that weaker-than-expected US economic data also supported the strengthening of the ringgit.
The ADP National Employment Report showed the US private sector added 98,000 jobs in June, lower than the market expectation of 118,000 jobs.
He said the report also showed Americans taking longer to find jobs, although there were still labor supply constraints in several industry sectors.
In early trade, the ringgit was mostly traded lower against major world currencies.
The ringgit depreciated against the British pound to 5.4303/4389 from 5.4203/4262 at Wednesday's close, and also weakened against the Japanese yen to 2.5160/5201 from 2.5144/5174.
However, the ringgit strengthened against the euro to 4.6532/6606 from 4.6600/6651.
Against regional currencies, the ringgit's performance was mixed.
The ringgit appreciated against the Philippine peso to 6.63/6.65 from 6.64/6.65, and strengthened slightly against the Indonesian rupiah to 227.8/228.3 from 227.9/228.3.
However, the ringgit depreciated against the Thai baht to 12.2668/2944 from 12.2526/2708, as well as weakening against the Singapore dollar to 3.1564/1616 from 3.1555/1589 at Wednesday's close.
