KUALA LUMPUR (July 25): The ringgit rebounded against the US dollar at the opening, with the local currency expected to remain trading in very tight ranges, said OANDA Head of Trading in Asia-Pacific, Stephen Innes.

He also told Bernama that the better ringgit’s performance was due to the oil prices, which stayed supportive of the local unit despite the fact that the prices were off yearly highs.

At 9 am, the local note was quoted at 4.0600/0650 versus the greenback from Tuesday’s close of  4.0630/0680.

He also said that currency markets including the ringgit tracked the dollar index spot most of the day and are expected to do so today.

The dollar index fell 0.04 per cent to 94.5730. 

“Besides the summer doldrums, the markets are heading into a couple of critical current events,” he said.

In the case of the European Central Bank (ECB), the market is looking for the next path of least resistance and the big question is will the ECB provide definitive policy guidance, whereas for the US Gross Domestic Product, it will be a substantial economic data print for the near-term fortunes for the US dollar, he added.

“Currently, the market is expecting a strong reading so if the data waffles, the US dollar could sell off dramatically,” he explained.

Meanwhile, the local unit was mixed versus a basket of major currencies.

The ringgit edged up against the yen to 3.6488/6536 from 3.6534/6589 and strengthened versus the euro to 4.7449/7520 from 4.7496/7571.

It was traded slightly higher against the Singapore dollar at 2.9761/9809 from 2.9770/9811, but eased against the British pound to 5.3373/3463 from 5.3278/3360 previously.