Ringgit opens higher as money market flows pick up

  • Forex
  • Tuesday, 24 Dec 2019

KUALA LUMPUR: The ringgit opened higher against the US dollar today, spurred by fresh buying interest for the local note despite the greenback being near a two-week high on relatively strong United States growth data, a dealer said.

At 9am, the ringgit was traded at 4.1390/1440 versus the US dollar from Monday's close of 4.1410/1440.

AxiTrader chief Asia market strategist Stephen Innes said that bond flows and equity market inflows should pick up as investors start to embrace a global reflating economy.

"We are caught in a holiday lull where market participants are taking on a few risks entering the new year, but this could be a temporary lull as everything continues to point to a harmonious dialogue between the United States and China.

"There is still some caution as the current ‘phase one’ deal gets ironed out. Asian traders will be much happier when the deal is finally inked," said Innes to Bernama.

He added that the ringgit is expected to trade between 4.135 and 4.150 for the remainder of the week and possibly into next week, barring any negative surprises on the trade talk front.

Meanwhile, the ringgit was traded mostly higher against a basket of major currencies, except the euro.

The local unit rose against the Singapore dollar to 3.0528/0576 from 3.0536/0569 on Monday, appreciated vis-a-vis the Japanese yen to 3.7820/7876 from 3.7855/7893 and strengthened versus the British pound to 5.3559/3628 from 5.3866/3922.

It slipped against the euro to 4.5906/5965 from 4.5891/5940 yesterday. - Bernama

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