Ringgit marginally higher against US$ as traders focus on rate cuts

Forex BNM

KUALA LUMPUR: The ringgit opened marginally higher against the US dollar in early session on renewed buying interest of the local note.

A dealer said the greenback remained strong as traders kept their focus on the health of US economy, which would give hint on the magnitude of the rates cuts by the Federal Reserve during its policy meeting later this month.

At 9.06am, the ringgit stood at 4.1100/1140 against the US dollar from yesterday’s close of 4.1125/1165.

Referring to the International Monetary Fund External Sector Report, the greenback according to the dealer, is overvalued by six per cent to 12 per cent based on near-term economic fundamentals.

"While the euro, the Japanese yen and China’s yuan were seen as broadly in line with fundamentals,” he said.

Meanwhile, the local note was easier against the yen, it stood at 3.8158/8199 from 3.7991/7031 on Wednesday, declined against the pound to 5.1112/1166 from 35.1003/1057 and fell against the euro at 4.6192/6241 from 4.6122/6183.

The ringgit, however, improved to 3.0214/0248 against the Singapore dollar from 3.0221/0255. - Bernama

Source : The Star Online