Ringgit opens lower on Covid concerns, hawkish Fed

KUALA LUMPUR: The ringgit opened marginally lower against the US dollar at opening today due to concerns over the COVID-19 pandemic in the region, as well as the hawkish US Federal Reserves tone that validated a bullish US dollar view, a dealer said.

At 9am, the local unit stood at 4.1180/1230, marginally lower against 4.1130/1180 at Tuesday's close.

Axi chief global markets strategist Stephen Innes said the US dollar barely made any significant headwinds despite COVID-19 concerns negatively denting oil prices overnight and regional travel restrictions.

"Travel restrictions are likely to remain in force longer than expected due to the new COVID-19 wave hitting Asia's shores, and the ringgit recovery could walk back amid ‘safe-haven’ demand for the US dollar,” he told Bernama.

At the opening bell, the ringgit was traded mixed against other major currencies.

The ringgit rebounded against the British pound to 5.7397/7470 from 5.7508/7594 and advanced against the euro at 4.9556/9633 from 4.9590/9659 yesterday.

It declined against the Singapore dollar to 3.0972/1021 from 3.0964/0011 and reversed gains versus the yen to 3.8098/8151 from 3.7918/7968. - Bernama

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