KUALA LUMPUR, July 2 ― The ringgit opened lower today against the US dollar on anticipation that an interest rate cut by the US Federal Reserve (Fed) in July would favour the greenback, said a dealer.
Vanguard Markets managing partner Stephen Innes said the trend is likely to be maintained until the US non-farm payroll data is released on Friday, and which holds the key to any Fed rate cut forecast.
At 9am, the ringgit stood at 4.1400/1440 against the greenback from yesterday's close of 4.1350/1400.
Commenting on the update in the trade war between the US and China, Innes opined that the truce could be temporary, and the trend more constructive for Asian emerging currencies as compared to the euro.
“Any rate cut will have a negative impact on the ringgit.
“Also, the market continues to lean towards the position that the US could escalate trade tensions again, and the longer the ceasefire holds, the more positive this could be for risk sentiment,” he told Bernama.
The ringgit was mixed against a basket of major currencies.
The local currency appreciated against the Japanese yen to 3.8174/8222 from Monday's 3.8181/8234 and rose against the euro to 4.6712/6773 from 4.6816/6890.
The ringgit was lower vis-a-vis the pound to 5.2342/2397 from 5.2279/2359 and unchanged against the Singapore dollar at 3.0517/0558 from yesterday. ― Bernama
