Ringgit Opens Flat Amid Cautious Economic Sentiment

By Zarul Effendi Razali

KUALA LUMPUR, Aug 28 (Bernama) -- The ringgit opened flat against the greenback on Thursday as investors await fresh leads ahead of key US inflation data.

At 8 am, the local note stood at 4.2335/2365, the same as yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit could move within RM4.22 to RM4.24 today, driven by possibilities of profit taking as traders are wary about the US personal consumption expenditures (PCE) inflation report tomorrow.

“The US Dollar Index (DXY) was generally hovering around 98 points as traders remain anxious about the US Federal Reserve (Fed) next move in September.

“Federal Reserve Bank of Richmond Tom Barkin indicated that he foresees modest adjustment in the interest rates in the next meeting as he expects small variation in the economy,” Mohd Afzanizam told Bernama today.

In the early session, the ringgit was traded lower against a basket of major currencies.

It slipped versus the euro to 4.9312/9347 from 4.9058/9093 at Wednesday’s close, fell vis-à-vis the Japanese yen to 2.8737/8759 from 2.8591/8611, and weakened against the British pound to 5.7169/7210 from 5.6890/6930.

It also traded mostly lower against other ASEAN currencies.

The local note weakened versus the Singapore dollar to 3.2940/2966 from 3.2843/2869 yesterday and declined against the Thai baht to 13.0631/0784 from 13.0330/0474.

The ringgit was flat against the Philippine peso and the Indonesian rupiah at at 7.40/7.41 and 258.6/258.9, respectively.

-- BERNAMA