Ringgit opens higher as Omicron revealed to be less deadly

KUALA LUMPUR: The ringgit strengthened against the US dollar at the opening on Wednesday as some uncertainty over the pandemic has begun to dissipate as scientists have started to have a better understanding of the Omicron variant.

At 9 am, the local note rose to 4.2220/2240 against the greenback from 4.2320/2330 at Tuesday’s close.

ActivTrades trader Dyogenes Rodrigues Diniz said investors were concerned that the new variant would cause another global lockdown.

"But it is now known that this variant is not as deadly as the previous ones. From a technical point of view, the USD/MYR (the US dollar-to-ringgit exchange rate) is trying to break a major resistance region at 4.2400.

"If the price manages to break above 4.2400, it could fall to 4.2900. On the other hand, if the USD/MYR breaks down from 4.1930, it could strengthen to 4.1400 in a few days' time,” he said in a statement.

The local note was traded higher vis-a-vis a basket of major currencies, except against the pound.

The ringgit appreciated against the Singapore dollar to 3.0915/0934 from 3.0974/0986 at Tuesday's close and strengthened versus the Japanese yen to 3.7188/7206 from 3.7221/7230.

It appreciated against the euro to 4.7599/7621 from 4.7699/7710 but weakened against the British pound to 5.5916/5943 from 5.6133/6147 at yesterday's close. - Bernama

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ringgit , currencies , Omicron , dollar , interest rate


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