BERNAMA – The Malaysian ringgit opened slightly higher against a softer greenback following the United States (US) Federal Reserve (Fed) stance that indicated it was not in a rush to cut interest rates, said an analyst.
At 8am, the ringgit rose to 4.4660/4730 against the greenback from Monday’s close of 4.4680/4730.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the Dollar Index (DXY) was down by 0.37 per cent to 107.922 points as the US Fed chair Jerome Powell reiterated the Fed’s stance not to rush the decision on reducing policy rates.
“It seems that the broad direction is to cut the Fed Fund Rate. It is a question of timing and the degree of the policy accommodation. As such, this will support the ringgit to a certain degree,” he told Bernama.
However, Mohd Afzanizam said comments from US President Donald Trump on tariffs would continue to dictate the market sentiments given the nature of such announcements, which tend to surprise the markets.
Hence, he said the policy uncertainties on tariffs would keep the currency market, including the ringgit, in a tight range.
