KUALA LUMPUR: The ringgit opened higher yesterday after the US avoided a government shutdown, boosting risk appetite and weakening the US dollar.
At 8 am, the ringgit rose to 4.4395/4500 against the greenback from last Friday’s 4.4410/4455. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said weaker US economic data also lifted sentiment for the local note.
The University of Michigan’s consumer sentiment index fell to 57.9 in March, its third straight decline and lowest since November 2022. “This suggests US consumers may cut spending, especially on imported goods facing higher tariffs from Canada, Mexico, and China,” he said, adding that this could push the Fed to accelerate rate cuts.
Investors are eyeing the Federal Open Market Committee (FOMC) meeting starting March 18, where while the Federal Funds Rate is expected to hold at 4.50 per cent, projections for inflation, growth, and unemployment will be in focus.
Against major currencies, the ringgit weakened, sliding to 4.8306/8420 against the euro, 5.7407/7543 against the
pound, and 2.9888/9960 against the yen.
Among ASEAN currencies, it eased to 3.3292/3373 against the Singapore dollar but strengthened to 13.1798/2228 against the Thai baht and edged up to 271.5/272.2 against the Indonesian rupiah. It was flat at 7.75/7.78 versus the Philippine peso. – BERNAMA
