KUALA LUMPUR: The ringgit opened lower against the US dollar on lack of demand. At 9.08 am, the ringgit was pegged at 4.1780/1830 against the greenback from 4.1750/1790 recorded on Monday.
Its status as safe haven would also add downward pressure on the ringgit with the local note’s direction would also be impacted by global interest rates movement.
"We believe global monetary easing will continue as countries will use cheap rates to weaken their currencies and maintain the comparative advantage. Thus, we expect Bank Negara Malaysia to follow the trend of the global interest rate cycle than to stay behind the curve,” it said in a note today. Against the yen, the ringgit rose to 3.9182/9240 from Monday’s 3.9183/9228 while vis-a-vis the Singapore dollar it went up to 3.0125/0176 from 3.0144/0184.
The local note fell against the British pound to 5.0683/0748 from 5.0593/0645 but advanced against the euro to 4.6309/6369 from 4.6338/6399. - Bernama.
Ambank research expects the market to focus on the coming Jackson Hole symposium on Aug 22 this week.
For the time being, its says some degree of volatility is to be expected amid positive developments over China's Huawei Technologies coupled with noise over the euro and the UK as well as the drone attack on Saudi's oil facility.
With limited economic data to offer leads, the research house expects the ringgit to trade between support levels of 4.1553 and 4.1655 while resistance is pinned at 4.1952 and 4.2058.
Did you find this article insightful?