Ringgit opens easier despite Malaysia's removal from FTSE Russell Watch List

KUALA LUMPUR: The ringgit opened easier against the US dollar despite news that Malaysia will be removed from the FTSE Russell Watch List and will retain its membership in the FTSE World Government Bond Index.

The FTSE Russell announced late Monday that Malaysia will be removed from the Watch List for potential reclassification of its market accessibility level from "2” to "1” and will retain its membership in the FTSE World Government Bond Index.

At 9am, the ringgit shed 30 basis points to 4.1420/1470 versus the greenback from 4.1390/1440 at Monday’s close.

Axi chief global market strategist Stephen Innes said the ringgit improved off monthly lows after the government released better than expected exports data for February 2021 amid signs of crude oil price recovery.

However, he said bonds have been sold off sharply.

"While stretched absolute yields could offer value to selective ‘real’ local money investors with lower liability hurdles, I still think foreign investors will remain wary as the easing cycle is over, and (bonds) should not be considered a reliable source of inflows,” he told Bernama.

Innes added that with the market turning into a better seller of bonds, any ringgit bounce could be fleeting.

At the opening bell, the local currency was traded mostly higher against major currencies, except versus the euro, slipping to 4.8747/8810 from 4.8733/8800 at Monday’s close.

The ringgit advanced against the Singapore dollar to 3.0709/0764 from 3.0744/0792, appreciated against the Japanese yen to 3.7703/7751 from 3.7768/7817 yesterday.

The ringgit strengthened against the British pound to 5.7023/7096 from 5.7247/7320. - Bernama
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Ringgit , Opening ,  Axi , Stephen Innes ,  FTSE Russell


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