KUALA LUMPUR (Nov 30): The ringgit opened marginally higher against the US dollar on Wednesday (Nov 30), as the greenback retreated amid growing inflationary pressure, an analyst said.
At 9am, the local note had risen to 4.5050/5100 against the US dollar, from Tuesday’s close at 4.5060/5130.
SPI Asset Management managing director Stephen Innes said investors will be tuning in to US Federal Reserve (Fed) chair Jerome Powell's speech later on Wednesday, as it will provide an indication of the Fed’s thoughts on recent easing in the financial condition index.
“The risk is not in the rate hike quantum, as the Federal Open Market Committee has already confirmed itself to a slower pace of hikes, but it is where the market moves from inflation to growth frustration," he told Bernama.
Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said the recent US dollar’s bullish push came after the release of the US Conference Board's consumer confidence data, which came in higher than expected.
“The US dollar’s appreciation due to higher consumer spending tends to cause inflationary pressure, which may push the Fed to raise interest rates to contain a price rise," he said.
Meanwhile, the ringgit was also traded higher against a basket of major currencies.
The local note climbed versus the Singapore dollar to 3.2780/2821 from 3.2804/2860 at Tuesday’s close, and advanced against the yen to 3.2497/2537 from 3.2614/2677.
It also appreciated versus the pound to 5.3943/4003 from 5.4004/4088 on Tuesday, and strengthened vis-a-vis the euro to 4.6591/6642 from 4.6705/6777.