KUALA LUMPUR: The ringgit opened lower against the US dollar today, nearing a 28-month low that was recorded during the first Movement Control Order (MCO) in 2020 amidst economic recovery.
At 9 am, the local currency stood at 4.3975/4010 versus the US dollar from Thursday’s close of 4.3420/3940.
The ringgit was traded at RM4.3942 on April 21, 2020.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain weak today as market players continue to place high priority over major central banks' actions.
"The rising US dollar is inevitable with the technical perspective as the US Dollar Index (DXY) has surpassed the 103 points," he told Bernama.
The US dollar rose to fresh three-week highs, above 103 points, and is expected to retest Year-To-Date high of 105.005.
He said the European Central Bank (ECB) has clearly communicated its intention to raise benchmark interest and to begin reducing its Asset Purchases Programme (APP) in July to combat soaring inflation.
Meanwhile, SPI Asset Management managing partner Stephen Innes expects the ringgit to struggle, given the backdrop but the local unit could be cushioned by higher energy prices.
The ringgit was traded higher against a basket of major currencies.
The local note inched up against the British pound to 5.4956/4999 from Thursday’s close of 5.4992/5017, improved against the Singapore dollar to 3.1834/1864 from 3.1939/1956.
It also strengthened against the Japanese yen to 3.2817/2846 from 3.2896/2914 and appreciated against the euro to 4.6715/6752 from 4.7060/7082 previously. - Bernama
