The ringgit opened steady against the US dollar at 4.3755/3805, as investors remained cautious due to risks surrounding the upcoming US election. Stephen Innes, managing director at SPI Asset Management, noted that election uncertainty and recent strong US inflation data have pressured the ringgit, especially with diminishing expectations for a Federal Reserve rate cut.
September’s US inflation was recorded at 2.1%, slightly above the Fed’s 2% target, signaling economic resilience. Innes also pointed to the potential impact of the US Nonfarm Payroll (NFP) report, which could affect the US dollar’s strength due to disruptions from recent labor strikes and hurricanes.
Ringgit Faces Election Pressure
In other currency movements, the ringgit traded lower against most major and ASEAN currencies. It strengthened against the British pound and Thai baht, trading at 5.6422/6487 and 12.9300/12.9539, respectively.
However, it fell against the Japanese yen (2.8786/8821), the euro (4.7619/7673), the Singapore dollar (3.3150/3193), the Indonesian rupiah (278.7/279.1), and the Philippine peso (7.53/7.54).
