Ringgit opens marginally higher vs greenback

by BERNAMA / pic by MUHD AMIN NAHARUL

KUALA LUMPUR – The ringgit opened marginally higher against the US dollar today as the mixed signals from the United States (US) equities market resulted in volatile movement overnight, an analyst said.

At 9 am, the local note rose to 4.1860/1890 versus the greenback from 4.1870/1905 at Monday’s close.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the volatile movement occurred as geopolitical risks are escalating in Eastern Europe, while investors are awaiting the outcome from the US Federal Open Market Committee (FOMC) meeting to be held today and tomorrow.

“The 10-year US Treasury note yield was higher by 1.77 per cent while the US Dollar Index (DXY) gained 0.26 per cent to 95.889 points,” he told Bernama.

Mohd Afzanizam noted that the market has been indecisive, given the confluence of factors that affect sentiments.

As such, he expected the domestic note to move within the RM4.18 – RM4.19 range against the US dollar.

Overall, the local note was traded mostly higher against a basket of other major currencies, except the Singapore dollar, where it had depreciated to 3.1153/1177 from 3.1146/1175 at yesterday’s close.

The ringgit was higher versus the euro at 4.7381/7415 compared to 4.7422/7462 on Monday, rose against the British pound to 5.6415/6455 from 5.6629/6677 and increased vis-a-vis the Japanese yen to 3.6723/6749 from 3.6854/6888 previously.