KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Wednesday, on the expectation that the US Federal Reserve will reduce short-term interest rates by a quarter-point to a range of between 1.75 per cent to 2.0 per cent when policymakers meet this week.
At 9 am, the ringgit rose to 4.1750/1800 versus the greenback from 4.1810/1850 at Tuesday’s close.
A dealer as quoted in Bernama said further monetary easing by the Fed may give a push to the local note and expects investors to show more confidence in Malaysian equities.
The latest decision on interest rate will be announced sometime this afternoon as a result of the two-day meeting yesterday.
He added, markets are betting high on the further interest rate cut, which is going to be a boost for the domestic market, adding that the Fed would likely make one more rate cut in December.
It made its first 25 basis points reduction in 10 years in July.