KUALA LUMPUR, November 4 – The ringgit opened slightly higher against the US dollar on Wednesday as investors remained cautious ahead of the United States midterm election results and Bank Negara Malaysia’s (BNM) upcoming monetary policy decision.
At 8am, the local currency was quoted at 4.0730/0795 against the US dollar, compared with Tuesday’s closing rate of 4.0735/0775.
However, market sentiment remained cautious as traders monitored developments in the United States and prepared for BNM’s Monetary Policy Committee (MPC) meeting scheduled for Thursday.
US Election Results Draw Market Attention
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors were closely watching the US midterm elections.
He noted that the rising cost of living, particularly petrol prices, could become an important issue for American voters.
Petrol prices above US$4 per gallon have added to concerns about household expenses. These developments could also influence market sentiment and currency movements.
Dr Mohd Afzanizam said traders were also waiting for BNM’s monetary policy announcement the following day.
As a result, he expected the ringgit to trade within a narrow range throughout the day.
Ringgit Records Mixed Performance Against Major Currencies
The local currency traded unevenly against several major international currencies.
It strengthened against the Japanese yen, moving to 2.5702/5745 from Tuesday’s closing rate of 2.5762/5789.
However, the ringgit weakened against the euro and British pound.
It slipped to 4.5646/5719 against the euro from 4.5587/5631. Against the pound, it declined to 5.4713/4800 from 5.4658/4712.
Ringgit Gains Against ASEAN Currencies
The ringgit performed better against several regional currencies.
It strengthened against the Thai baht to 12.0606/0888 and the Indonesian rupiah to 224.2/224.7.
The local currency also edged higher against the Philippine peso at 6.41/6.43.
Meanwhile, it improved slightly against the Singapore dollar to 3.1805/1861.
Overall, the ringgit began the day with a modest gain against the US dollar. However, investors remained cautious ahead of key political and monetary policy developments.
Source : BERNAMA | Rewritten By Minutesmy
