THE ringgit rebounded to close higher against the US dollar today in cautious mode ahead of the Federal Open Market Committee meeting minutes due to be released later today, an economist said.  

At 6pm, the local note rose to 4.6265/6320 against the US dollar from 4.6335/6385 at the close yesterday. 

Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said market players would want to seek clarity on the possible shift in monetary stance, which is still vague and tilted on the upside. 

“The local currency is seen as well supported as risk-off mode continues to linger following yesterday’s rate cut by the People’s Bank of China,” he told Bernama. 

In the meantime, he noted that the disinflationary trend has become increasingly visible, making the case for a shift in monetary stance globally gain more traction. 

This comes after the Reserve Bank of New Zealand kept its policy rate at 5.5%, maintaining the status quo for the second consecutive month, while the UK Consumer Price Index came in lower at 6.8% in July from 7.9% previously.  

“In that sense, expect the US dollar against the ringgit to remain weak in the near term,” he added.  

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

It appreciated against the Japanese yen to 3.1782/1822 from 3.1830/1867 yesterday and strengthened versus the euro to 5.0549/0609 from 5.0690/0745 but inched down vis-a-vis the British pound to 5.9020/9090 from 5.8966/9030 yesterday.  

At the same time, the local unit was traded mixed against other Asean currencies. 

The ringgit went up against the Thai baht to 13.0777/0995 from 13.0908/1105 yesterday and rose vis-a-vis the Singapore dollar to 3.4086/4132 from 3.4155/4197 previously.  

However, it depreciated against the Philippine peso to 8.18/8.20 from 8.15/8.16 yesterday and declined versus the Indonesian rupiah to 302.7/303.2 from 301.9/302.4 yesterday. – Bernama, August 16, 2023.