Ringgit rebounds to open marginally higher versus US dollar

KUALA LUMPUR: The ringgit rebounded to open marginally higher against the US dollar amid a volatile market on unclear direction of a possibility of interest rate cut, an economist said.

At 9.04 am, the ringgit rose to 4.7130/7180 versus the greenback from yesterday's close of 4.7145/7200.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there seems to be a tug of war between the markets and the US Federal Reserve on the timing of a rate cut. 

"The probability of the Fed Funds Rate cut in March based on the derivatives market fell to 57.2 per cent from 73.6 per cent a week ago.

"One thing clear for sure, there has been an excessive build-up in anticipation of a rate cut which leads to higher asset prices," he told Bernama. 

From the technical point, Mohd Afzanizam noted that the US dollar against the ringgit is quite close to the oversold position.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies, except versus the euro, when it eased to 5.1343/1398 from 5.1284/1344 at Wednesday's close.

It was higher vis-a-vis the British pound to 5.9770/9834 from 5.9799/9868 yesterday, and went up against the Japanese yen to 3.1849/1885 from 3.1919/1959 previously.

The local unit was mostly higher against Asean currencies.

It was marginally higher against the Thai baht to 13.2790/3003 from 13.2795/3010 at Wednesday's close and appreciated versus the Indonesian rupiah to 301.2/301.7 from 301.3/301.8 yesterday.

The ringgit was slightly lower against the Singapore dollar to 3.5083/5122 from 3.5081/5127 yesterday and was flat vis-à-vis the Philippine peso at 8.43/8.45. - Bernama

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