Ringgit opens marginally higher on buying interest

Ringgit opens marginally higher on buying interest

At 9am, the local currency rose to 4.5470/5510 against the greenback from 4.5495/5515 at yesterday’s close. ― Picture by Sayuti Zainudin

Tuesday, 20 Sep 2022 9:59 AM MYT

KUALA LUMPUR, Sept 20 — The ringgit rebounded to open marginally higher against the US dollar today on renewed buying interest, despite the anticipation of a United States (US) interest rate hike, a dealer said.

At 9am, the local currency rose to 4.5470/5510 against the greenback from 4.5495/5515 at yesterday’s close.

However, ActivTrades trader, Dyogenes Rodrigues Diniz said the US dollar is expected to continue to strengthen against the ringgit in anticipation of the interest rate decision in the US, where the Federal Open Market Committee (FOMC) is expected to announce a 75-basis point (bps) hike.

Nevertheless, he said the market is already pricing in a hike of as much as 75 bps and if it did happen, the US dollar is likely to lose some ground, at least initially.

“On the other hand, if the hike is 100 bps, it could bolster the US dollar further.

“From a technical point of view, the US dollar/ringgit is in an extremely overbought region, which could signal buyer fatigue in the near future,” he told Bernama.

Meanwhile, the ringgit was traded lower against a basket of major currencies.

It fell against the British pound to 5.1972/2018 from 5.1678/1700 at yesterday’s close and inched down versus the Singapore dollar to 3.2299/2332 from 3.2261/2278 previously.

The local note depreciated against the euro to 4.5620/5660 from 4.5372/5392 on Monday and declined against the Japanese yen to 3.1757/1790 from 3.1706/1724 previously. — Bernama