KUALA LUMPUR: The ringgit eased against the US dollar in the early session, tracking other major currencies, as the domestic unit is likely to stay cautious amid lingering Middle East tensions that further disrupt global oil and gas flows.
At 8am, the local currency stood at 4.0855/4.0920 versus the greenback, compared with 4.0850/4.0890 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the implication is how the prevailing condition would translate into inflation and, more importantly, the US Federal Open Market Committee (FOMC) decision on interest rates.
“The odds for a September hike have risen to 64.8% compared to 51.5% in early July. Hence, it is going to be dollar-positive in the near term,” he noted.
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