Ringgit opens higher against major currencies, lower vs us dollar

KUALA LUMPUR: The ringgit opened higher against major currencies but edged lower against the US dollar on Thursday, as stronger US economic data and expectations of further interest rate hikes by the US Federal Reserve (Fed) supported the greenback.

At 8 am, the ringgit eased to 4.0835/0910 against the US dollar from Wednesday’s close of 4.0780/0825.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of further Fed rate hikes this year had supported the US Dollar Index (DXY), which rose 0.49 per cent to 101.096, amid stronger business sentiment.

"The US Composite Purchasing Managers’ Index (PMI) Output Index rose to 58.4 points in September, its highest level in 62 months.

"Apart from that, remarks by US Fed Governor Michael Barr indicated that the Fed is likely to resume its interest rate hike cycle this year,” he told Bernama.