KUALA LUMPUR: The ringgit opened slightly lower against the US dollar as traders continue to observe the potential trade deal between the US and China, along with geopolitical risks, according to an economist.
At 8.02 am, the local note edged down to 4.2880/3090 versus the greenback compared to Wednesday’s closing rate of 4.2840/2910.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the positive sentiments led the US Dollar Index (DXY) to gain some grounds, while emerging currencies are stabilising.
“Market sentiments are fairly positive and stable as the standoff between the US and China looks like receding, paving the way for the trade deal at some point in the future,” he told Bernama.
“Thus, we foresee dollar-ringgit lingering around its current level today,” he added.
At the opening, the ringgit traded higher against a basket of major currencies.
It rose against the Japanese yen to 2.9230/9377 from 2.9373/9425 at Wednesday’s close, appreciated versus the British pound to 5.6867/7146 from 5.7191/7285 and gained vis-a-vis the euro to 4.7931/8166 from 4.8204/8282 previously.
Meanwhile, the local note was traded mixed against its ASEAN peers.
It climbed versus the Singapore dollar to 3.2942/3110 from 3.3045/3104 yesterday and surged against the Thai baht to 12.8226/8989 from 12.8920/9208 previously.
However, the ringgit inched down vis-a-vis the Philippine peso to 7.67/7.71 from 7.66/7.68 at Wednesday’s close and was marginally lower against the Indonesian rupiah to 258.8/260.3 from 258.6/259.2 previously.
