KUALA LUMPUR: The ringgit opened higher against the US dollar on Thursday, supported by continued buying interest in the local currency amid the US government’s first shutdown in nearly seven years.
At 8.02 am, the ringgit strengthened to 4.2000/2100 against the greenback from Wednesday’s close of 4.2045/2095.
Bank Muamalat Malaysia Bhd, chief economist Dr Mohd Afzanizam Abdul Rashid, said the shutdown has restricted US government services, including the release of statistical data.
"The key question is how quickly the impasse between Republicans and Democrats over spending programmes and concessions can be resolved.
"In the meantime, the shutdown is dollar-negative. The dollar-ringgit could make another attempt to pierce the RM4.20 psychological level today,” he told Bernama.
In early trading, the ringgit also rose against a basket of major currencies. It gained to 4.9279/9396 versus the euro from 4.9327/9386 at Wednesday’s close, edged up to 5.6603/6738 against the British pound from 5.6605/6672, and strengthened to 2.8542/8612 against the Japanese yen from 2.8561/8597.
The local note advanced against regional currencies as well, rising to 3.2611/2694 against the Singapore dollar from 3.2623/2665, and to 12.9478/9870 versus the Thai baht from 12.9929/13.0128.
It also gained versus the Philippine peso to 7.22/7.24 from 7.23/7.24 and inched up against the Indonesian rupiah to 252.4/253.2 from 252.7/253.1. - Bernama
