Ringgit opens higher on 12MP optimism

KUALA LUMPUR: The ringgit opened firmer against the US dollar today, riding on positive investors’ sentiment following the tabling of the 12th Malaysia Plan (12MP) yesterday.

At 9 am, the ringgit rose to 4.1800/1855 versus the greenback from yesterday's closing of 4.1865/1885.

ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar has been moving sideways against the ringgit over the past few days, weighed down by the United States Federal Reserve’s (US Fed) stance on the US interest rates.

Last week, US Fed's chairman, Jerome Powell reassured global markets by saying that although the tapering process will start in November, the US interest rate will not be increased until 2023.

"Consumer Confidence data may provide more information on the state of economic recovery in the US and that could offer some clues on the pace of the tapering.

"From a technical point of view, the ringgit is expected to move sideways against the greenback, between the levels of 4.1930 and 4.1770," Diniz told Bernama.

He said if the level rises above 4.1930, it could rise further to 4.2370, whereas if it falls below 4.1770, the ringgit could drop to 4.1350 within a few days.

Yesterday, Prime Minister Datuk Seri Ismail Sabri Yaakob tabled the 12MP, which aims to revitalise Malaysia’s economic growth and achieve long-term development goals as the country faces the challenges from the COVID-19 pandemic.

At the opening, the ringgit was traded higher against a basket of major currencies.

The local note rose to 3.0851/0896 against the Singapore dollar compared with 3.0915/0932 at Monday's close, and appreciated vis-a-vis the euro to 4.8860/8924 from 4.8965/8989 previously.

It strengthened against the Japanese yen to 3.7644/7697 from 3.7737/7758 and improved against the British pound to 5.7245/7320 from 5.7338/7366 previously. - Bernama

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