Ringgit opens lower versus US dollar

KUALA LUMPUR, Aug 8 -- The ringgit opened lower against the US dollar in early trade today given the prevailing sentiment in the market, which suggests a weaker outlook for global growth.

At 9.01 am, the local note decreased to 4.5640/5695 against the greenback compared with 4.5575/5625 at Mondays's close.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said Malaysia's Industrial Production Index (IPI) for June is anticipated to show a decline of 1 per cent based on consensus estimates.

"Meanwhile, United States (US) Federal Reserve officials' statement implies that the Fed Fund Rate will likely remain high in the short term, but there is a chance of a rate cut next year if inflation continues to ease.

"Consequently, the US Dollar Index (DXY) inched up by 0.03 per cent to reach 102.047 yesterday," he told Bernama.

He expected the ringgit to hover around 4.56 against the US dollar today.

The ringgit was also traded mostly lower against a basket of major currencies.

It dropped vis-a-vis the British pound to 5.8287/8357 from 5.7971/8035 on Monday's close and fell against the euro to 5.0158/0219 from 4.9978/0032.

Meanwhile, it rose against the Japanese yen to 3.1918/1961 from 3.2018/2056 previously.

The local unit was traded mixed against other Asean currencies.

The ringgit appreciated against the Thai baht at 13.0792/1006 from 13.0801/0997 previously and rose against the Philippine peso to 8.12/8.14 from 8.13/8.14.

It depreciated against the Singapore dollar to 3.3996/4042 from 3.3968/4008 and went down against the Indonesian rupiah to 300.5/301.0 from 300.0/300.6 previously


TAGS: Ringgit, Opening, Mohd Afzanizam Abdul Rashid, US dollar, Outlook, Sentiment

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