Ringgit Slightly Higher Against US Dollar In Early Trade

KUALA LUMPUR, Dec 14 (Bernama) -- The ringgit traded slightly higher against the US dollar at the opening Wednesday, amid mixed sentiment in the market, as traders awaited the outcome of the US Federal Reserve policy meeting Wednesday. At 9 am, the ringgit was traded at 4.4310/4360 versus the dollar from 4.4340/4390 on Tuesday. A dealer said a hike of 0.25 per cent is widely expected and this would have ramifications on emerging markets in general. "The Federal Reserve's move to increase interest rates last year resulted in increasing capital outflows from other markets. Due to the same reason, investors will search for higher yields in a less risky environment in the US," he added. At the same time, other central banks, including the Swiss National Bank and Bank of England are also meeting this week, and this will also influence the market tone. Against a basket of major currencies, the ringgit traded mixed. Vis-a-vis the Singapore dollar, the ringgit fell to 3.1099/1152 from 3.1072/1125 and versus the yen, increased to 3.8460/8530 from 3.8470/8516 on Tuesday. Against the British pound, the local currency appreciated to 5.6074/6160 from 5.6361/6437, while against the euro it decreased to 4.7115/7172 from 4.7085/7142. -- BERNAMA