Ringgit opens marginally higher as greenback demand eases

KUALA LUMPUR: The ringgit opened marginally higher against the US dollar today on renewed buying interest amid slightly easing demand for the greenback due to softer US Treasury yields, said an analyst.

At 9.07 am, the local note stood at 4.3865/3900 versus the greenback from Tuesday’s close of 4.3940/3980.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the yield on the 2-year and 10-year US Treasury fell by 14 and 10 basis points to 2.48 per cent and 2.75 per cent respectively, and should offer the beleaguered ringgit some relief today.

"The benchmark equities also fell, led by the technology sector as earnings are expected to be challenging going forward," he said.

Mohd Afzanizam said the US Dollar Index (DXY) was down 0.21 per cent to 101.857 points, making the ringgit more attractive for market players.

He added that the Purchasing Managers Index (PMI) which gauges the business sentiments was also on the decline in Europe and the US, signalling that the business community has become increasingly wary on the economic prospects although their readings are still above the 50-point threshold.

Mohd Afzanizam believes there is not much catalysts for the ringgit as sentiments remain weak.

"Following this, the range-bound trade would prevail in the near term,” he said.

The ringgit was, however, traded mixed against a basket of major currencies.

It appreciated against the Singapore dollar to 3.1934/1962 from Tuesday’s close of 3.1966/1999, decreased vis-a-vis the Japanese yen to 3.4548/4578 from 3.4506/4540, and slid versus the British pound to 5.4923/4967 from 5.4885/4935.

However, the ringgit rose versus the euro to 4.7010/7048 from 4.7064/7107 yesterday. - Bernama

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