Ringgit rises against greenback ahead of ECB meeting

At 9.05 pm, the ringgit stood at 4.1165/1205 from Wednesday's 4.1170/1200.

KUALA LUMPUR: The ringgit recovered from two days of losses to open higher against the US dollar this morning on renewed interest.

At 9.05 pm, the ringgit stood at 4.1165/1205 from Wednesday’s 4.1170/1200.

A dealer said the greenback was flat after three straight days of gains and ahead of the monetary policy meetings of the European Central Bank today and the Federal Open Market Committee next week.

He said the investors also reacted positively to news that US officials would be travelling to China next week to resume trade talks.

“This helped boost sentiment in the currency market,” he added. – Bernama

Ambank research says the European Central Bank is unlikely to cut its policy rates on Thursday.

“We expect the ECB to pay groundwork for an interest rate cut, and possibly further action, later this year,” it said in a note.

The research house added that the slowdown in global growth and softness in inflation are pushing central bank to ease again, especially in Malaysia.

“Although June inflation jumped up to 1.5%y/y, we reiterate our full year inflation projection at 1.0%.

“Hence, there is still room for BNM to further reduce rates by 25bps sometime in 2H2019 in a move to support growth, to which we have attached a 40% chance,” it said.

Ambank expects the ringgit to trade between its support level of 4.1050 and 4.1110 while its resistance is pegged to 4.1254 and 4.1305.