Ringgit rebounds to open marginally higher vs US dollar

KUALA LUMPUR: The ringgit rebounded to open higher against the US dollar today due to renewed demand as some investors returned to emerging currencies, an analyst said.

At 9.08 am, the ringgit rose to 4.2935/2985 against the greenback from Tuesday’s close of 4.2995/3055.

The analyst said investors took note of the United States Federal Reserve chair Jerome Powell’s latest comment which was seen to be dovish, even as he reiterated the stance that fighting inflation will require higher interest rates and more time.

Powell said disinflation has started and that he expects significant declines in inflation this year — remarks that echoed what he said after a policy-setting meeting last week.

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

The local note inched down against the Singapore dollar to 3.2428/2468 from Tuesday’s close of 3.2420/2470 and weakened vis-a-vis the Japanese yen to 3.2805/2848 from 3.2624/2672 yesterday.

The ringgit had also depreciated against the British pound to 5.1767/1827 from 5.1624/1696 earlier and slipped versus the euro to 4.6078/6132 from 4.6065/6129 previously. –Bernama