By Nurunnasihah Ahmad Rashid
KUALA LUMPUR, Nov 10 (Bernama) -- The ringgit opened marginally higher against the US dollar on Tuesday amid cautious market sentiment as investors continued to assess global economic developments and the outlook for US interest rates.
At 8 am, the local currency inched up to 4.0550/0610 versus the greenback from Friday’s close of 4.0565/0610.
The market was closed on Monday for the Deepavali replacement holiday.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors will be closely monitoring upcoming US inflation data as softer readings could weigh on US Treasury yields and the greenback, providing support for the ringgit.
Meanwhile, he said Brent crude prices fell 5.85 per cent to US$92.57 per barrel following US President Donald Trump's indication that the war with Iran could end, easing concerns over potential supply disruptions.
“The US Dollar Index (DXY) dropped 0.61 per cent to 101.679 as a result,” he said.
On the domestic front, Mohd Afzanizam said Malaysia's economic indicators, alongside Bank Negara Malaysia's decision to maintain the Overnight Policy Rate at 2.75 per cent, are expected to provide a stable backdrop for the ringgit.
“Ringgit is expected to trade higher against the US dollar as market sentiments appear to be improving.
“The ringgit is expected to trade between RM4.05 and RM4.06 today,” he told Bernama.
The ringgit traded lower against a basket of major currencies.
It fell versus the Japanese yen to 2.5666/5704 from 2.5616/5646 at Friday’s close, depreciated against the euro to 4.5505/5573 from 4.5315/5365 and weakened vis-a-vis the British pound to 5.4499/4580 from 5.4304/4365 previously.
The ringgit performed mixed against its ASEAN peers.
The local currency decreased versus the Singapore dollar to 3.1704/1756 from the previous close of 3.1657/1694 and dropped against the Thai baht to 12.1367/1641 from 12.0898/1105.
However, it was flat versus the rupiah at 224.2/224.6 and appreciated vis-a-vis the Philippine peso to 6.40/6.42 from 6.43/6.44 from last Friday’s close.
-- BERNAMA