Ringgit opens higher vs US$ ahead of key central bank meetings

KUALA LUMPUR: The ringgit opened higher against the US dollar on Tuesday, amid cautious sentiment ahead of key central bank meetings this week, an economist said.

At 8 am, the local currency edged up to 4.0705/0775 against the greenback from yesterday’s close of 4.0735/0770.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the market focus is on the upcoming Federal Open Market Committee (FOMC) meeting and Bank of Japan (BoJ) policy decisions.

"Therefore, ahead of the FOMC and BoJ meetings this week, the ringgit is likely to stay cautious.

"Judging from the movement in the bond market, it appears that the US Federal Reserve (Fed) will deliver a 25 basis point hike,” he told Bernama.