KUALA LUMPUR, Mar 16: The ringgit opened higher against the US dollar today as the greenback lost ground after the US Federal Reserve (Fed) increased interest rates on Wednesday.
At 9 am, the local note was traded at 4.4300/4350 against the greenback from Wednesday’s close of 4.4460/4500. A dealer said the ringgit rebounded despite the Fed raising interest rates by 25 basis points to a range of 0.75 per cent to 1.00 per cent yesterday.
“The rate hike was widely expected and was already factored into the market. It is not a surprise move,” she said.
Meanwhile, the dollar weakened against other major currencies following a less hawkish policy statement by Fed which indicated that there would be an additional two rounds of interest rate increase this year, albeit, at a gradual pace.
The ringgit, however, traded lower against a basket of major currencies.
It shed against the Singapore dollar to 3.1564/1609 from 3.1463/1507 on Wednesday and vis-a-vis the yen, it fell to 3.9103/9151 from 3.8782/8821 yesterday.
The local note weakened against the British pound to 5.4365/4453 from 5.4250/4312 on Wednesday and was lower against the euro at 4.7556/7614 from 4.7243/7290 yesterday.
(The Malaysian Times)