Ringgit rebounds against US dollar to open marginally higher

Ringgit rebounds against US dollar to open marginally higher
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KUALA LUMPUR (July 13): The ringgit rebounded from Tuesday's (July 12) losses to open marginally higher against the US dollar on Wednesday, as slightly cheaper prices prompted some investors to return to emerging currencies, dealers said.

At 9.10am, the local currency had appreciated versus the greenback to 4.4355/4400 from Tuesday’s close at 4.4385/4405.

A dealer said that the greenback gained its momentum on Tuesday after the closely-watched US non-farm payrolls increased more than expected in June to 372,000 against the consensus projection of 268,000.

He said the positive data would certainly lend further support for another 75-basis-point (bps) hike in the federal funds rate.

On the home front, analysts expect Bank Negara Malaysia to raise the overnight policy rate one more time during its September meeting by another 25 bps to 2.50%.

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

It weakened against the British pound to 5.2729/2783 from 5.2539/2562 on Tuesday and decreased versus the euro to 4.4528/4573 from 4.4456/4476 previously.

The local unit, however, was higher against the Singapore dollar at 3.1525/1561 from 3.1539/1556 on Tuesday and strengthened vis-a-vis the Japanese yen to 3.2352/2390 from 3.2414/2431.

The market was closed on Monday, a replacement public holiday for Aidiladha, which fell on Sunday.