Ringgit improves as greenback undergoes correction

KUALA LUMPUR: The ringgit improved at the opening of Wednesday's trade, as the greenback retreated slightly.

At 9.06 am, the local currency stood at 4.1995/2040 versus the greenback from 4.2050/2085 at Tuesday’s close.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the greenback could be experiencing some correction after a sharp appreciation.

The US Dollar Index (DXY) declined 0.11 per cent to 98.988 points.

However, Mohd Afzanizam expects the ringgit to remain in a tight range as investors are adopting a wait-and -see attitude.

‘’The latest Producer Price Index print for the US, which grew 10 per cent in February from 9.7 per cent, appears to be reinvigorating the view that the Fed will raise their benchmark rate in the Federal Open Market Committee meeting this week.

‘’Meanwhile, Brent crude is hovering slightly below U$100 per barrel as hope for nuclear talks with Iran would result in more oil supplies to come on stream. Be that as it may, the economic uncertainties have become elevated,’’ he told Bernama.

The ringgit was traded stronger against a basket of major currencies.

The local unit appreciated against the Japanese yen to 3.5475/5516 from 3.5642/5674 yesterday and climbed against the British pound to 5.4761/4820 from 5.4833/4879.

It also strengthened against the Singapore dollar to 3.0739/0776 versus 3.0774/0802 previously and rose against the euro to 4.6035/6084 from 4.6263/6302. - Bernama