Ringgit opens slightly higher against US dollar

  • Business
  • Friday, 23 Mar 2018

At 9 am(0100gmt), the local unit was traded at 4.1490/1520 against the greenback from Monday's close of 4.1480/1510.

KUALA LUMPUR: The ringgit was slightly higher against the US dollar in the morning session on sustained demand for the local unit, said a dealer.

At 9.08 am, the local note was quoted at 3.9110/9140 from Thursday's close of 3.9120/9150.

However, OANDA Head of Trading Asia-Pacific Stephen Innes considered the ringgit a riskier currency given the massive wave of risk aversion gripping the market, and is expected to gravitate towards the higher end of the current range against the US dollar.

"The possible escalation of a trade war between China and the United States (US) is denting regional sentiment. Buckle in, as there will be some short-term pain, given the enormous export-oriented nature of the regional economies," he said in a note today.

While Malaysia is nowhere near as dependent on US exports as other regional currencies, Innes said it will be difficult to avoid the short-term fall out from a local association perspective.

"But the far more reaching implications for regional currency markets is that this could lead to the markets pricing out future rate hike premiums and in some cases, moving to interest rate cut probabilities," he added.

Meanwhile, the local unit was a little changed against the Singapore dollar at 2.9732/9771 from 2.9735/9770 and fell against the Japanese yen to 3.7290/7333 from 3.7028/7074.

It rose against the British pound to 5.5208/5254 from 5.5312/5370 and appreciated against the euro to 4.8223/8271 from 4.8243/8299. - Bernama

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