KUALA LUMPUR: The ringgit opened higher against the US dollar today on improved demand as investors await testimony from US Federal Reserve Chair Janet Yellen for clues on when the central bank will tighten its monetary policy, dealers said.
At 9am, the local note stood at 4.2925/2955 against the greenback, versus Monday’s close of 4.2950/2980.
Yellen is expected to make a semi-annual testimony before the US Congress on Wednesday and Thursday. A dealer said gains in the ringgit were, however, capped by US job data, which surged more than expected in June, signalling a recovery in the labour market that could keep the Fed on course for a third interest rate increase this year.
The ringgit was traded mixed against other major currencies. It appreciated against the Singapore dollar to 3.0975/1019 from 3.0982/1026 on Monday, but slid against the euro to 4.8909/8956 from 4.8899/8937. It rose against the yen to 3.7597/7637 from 3.7600/7629, and was easier versus the pound at 5.5275/5317 from 5.5247/5298 on Monday.