KUALA LUMPUR (June 9): The ringgit opened lower against the US dollar on Thursday (June 9) on the back of potential interest rate hike in the US, said a dealer.
At 9am, the local currency stood at 4.3945/3980 versus the US dollar from Wednesday’s close of 4.3930/3960.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade range-bound on Thursday as market players await global financial policymakers’ actions.
“The focus is on the ECB monetary policy decision slated for today (Thursday). At the same time foreign exchange players are bogged down by interest rate decision by major central banks,” he told Bernama.
He said the general consensus is that there would not be any change to the benchmark interest rate.
“However, it would be interesting to see the ECB narratives and how it would translate into future policy response which may set the stage for the beginning of normalising their excessive monetary policy accommodation,” he said.
In addition, he said the Federal Open Market Committee (FOMC) meeting will be held on June 14 and 15.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
It strengthened against the yen to 3.2748/2777 from 3.2837/2862 and rose slightly against the Singapore dollar to 3.1911/1941 from Wednesday’s close of 3.1928/1952.
However, the local note depreciated against the British pound to 5.5081/5125 from 5.5027/5064 on Wednesday and eased against the euro to 4.7069/7107 from 4.7027/7059.-BERNAMA