Ringgit slightly higher against US dollar at opening

File pic - MUHAMAD SHAHRIL ROSLI/The Star.

KUALA LUMPUR: The ringgit opened slightly higher against the US dollar on Monday, supported by the global economic recovery which is cruising at a reasonable speed, said an analyst.

At 9.00 am, the local currency was trading at 4.2070/2115 against the greenback from 4.2080/2110 at Friday’s close.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Malaysian ringgit staged a decent trend against the US dollar last week although the uncertainties over the military conflict in Ukraine persisted.

"Last week, the ringgit appreciated to RM4.2095 due to the positive economic data point.

"From the technical charts, the ringgit seems to be in an oversold position, indicating possibilities that the currency would appreciate in the near term," he told Bernama.

As such, Mohd Afzanizam said the ringgit could move between RM4.19 and RM4.20 today.

According to the report, the US jobless claims fell further to 187,000 for the week ended March 19 from 215,000 in the previous week and the Purchasing Managers' Index (PMI) in major economies continues to hover above the 50-point benchmark, indicating that business sentiments are still positive.

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

The local unit rose against the British pound to 5.5356/5415 from 5.5394/5434 on Friday and gained versus the euro to 4.6151/6200 from 4.6305/6338.

The ringgit also appreciated vis-a-vis the yen to 3.4413/4453 from Friday’s close of 3.4608/4633 and improved against the Singapore dollar to 3.0950/0987 from 3.1021/1045. - Bernama