THE ringgit opened higher against the United States dollar this morning, despite markets’ uncertainty over what to expect from the upcoming US interest rate decision, a dealer said. 

At 9am, the local note traded at 4.4050/4130 against the US dollar, compared with 4.4260/4320 at the close yesterday. 

ActivTrades Trader Dyogenes Rodrigues Diniz said the decrease in the recent US inflation rate sent a clear message to investors that perhaps the US Federal Reserve (Fed) would not have to act as incisively over the next year and might adopt a more dovish tone throughout 2023. 

The US inflation data came in lower than expected (7.1% real against 7.3% forecast). 

“The consequence of a more flexible stance on the part of the Fed could be a fall in interest rates, which could cause a possible devaluation of the US dollar against its counterparts,” he said in a note. 

Meanwhile, the ringgit traded easier against a basket of major currencies. 

The local note fell further against the British pound to 5.4419/4518 from 5.4307/4381 at yesterday’s close and eased versus the euro to 4.6843/6928 from 4.6646/6709 yesterday. 

It fell against the Singapore dollar to 3.2702/2767 from 3.2640/2689 and declined against the Japanese yen to 3.2550/2614 from 3.2142/2188 at yesterday’s close. – Bernama, December 14, 2022.