Ringgit opens lower against US dollar

KUALA LUMPUR: The ringgit eased against the US dollar in the early session on lack of buying interest, said a dealer.
At 9.01am, the local note was quoted at 3.9200/9250 from Tuesday's close of 3.9150/9200.
Oanda Head of Trading Asia-Pacific, Stephen Innes said local ringgit traders and investors were monitoring the US Federal Open Market Committee's (FOMC) forward guidance and the US Federal Reserve's (Fed) fund rates dot-plot projection causing demand in the local unit to dwindle.
He added that markets should tie a string around their finger to remind themselves it was not uncommon for the US dollar to recover from bearish extremes ahead of an FOMC meeting
"A steeper rate hike trajectory is keeping the region's markets apprehensive, and when you factor in the adverse domestic equity price action of late, the ringgit continues to struggle short term.
"But for the ringgit, we are miles away from a crossroad in sentiment as even in the face of a one-dot increase in the Fed projections.The current account driven ringgit should remain in favour regionally," Innes said in a note today.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
It rose against the euro at 4.8047/8113 against Tuesday's 4.8205/8287 and was slightly higher against the Japanese yen at 3.6811/6872 from 3.6816/6866 yesterday.
The local unit appreciated against the Singapore dollar at 2.9713/9764 from Monday's 2.9727/9769, but declined against the British pound to 5.4919/4993 from 5.4912/4998. — Bernama