Ringgit Opens Higher With Us Govt Shutdown Averted

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KUALA LUMPUR: The ringgit opened higher today after the US averted government shutdown, suggesting improved risk appetite sentiment, leading to a weaker US dollar.The US avoided a government shutdown after the Senate approved a Republican-backed measure last Friday to fund the government for the next six months.
At 8am, the ringgit increased to 4.4395/4500 against the greenback from last Friday’s close of 4.4410/4455.
Bank Muamalat Malaysia chief economist Afzanizam Abdul Rashid said weaker US economic data also contributed to positive sentiment for the local note today.
It was reported that the University of Michigan’s consumer sentiment index has declined drastically to 57.9 points in March.
“This is the third consecutive month of decline and the lowest since November 2022.
“This suggests the US consumers are expected to spend cautiously as the price of goods, especially for imports, are likely to go up following the tariff measures imposed on Canada, Mexico and China,” he said, adding this might be more reason that the Federal Reserve might want to accelerate the interest rate cut this year.
Moreover, Afzanizam said traders and investors will be observing the two-day federal open market committee (FOMC) meeting which will begin on March 18.
While the Federal Funds Rate (FFR) is expected to remain at 4.50%, he said the projection for the FFR, inflation, growth and unemployment rate will be the key focus.
The ringgit traded lower against a basket of major currencies.
It slid against the euro to 4.8306/8420 from 4.8194/8243 at last Friday’s close, depreciated against the British pound to 5.7407/7543 from 5.7404/7463, and fell against the Japanese yen to 2.9888/9960 from 2.9809/9842.
The local note was mixed against Asean currencies.
It eased against the Singapore dollar to 3.3292/3373 from 3.3241/3277 at the previous close but strengthened against the Thai baht to 13.1798/2228 from 13.1820/2020.
The ringgit also edged up against the Indonesian rupiah to 271.5/272.2 from 271.6/272.0 and was flat versus the Philippine peso at 7.75/7.78 from 7.75/7.77. - FMT

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