Ringgit opens higher as US dollar retreats


KUALA LUMPUR – The ringgit opened higher against the US dollar today following a weaker US dollar as markets welcomed news over the de-escalation of tensions in Eastern Europe, an analyst said.

At 9 am, the local currency appreciated to 4.1830/4.1860 versus the greenback from Tuesday’s close of 4.1850/1870.

Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index fell 0.4 per cent to 95.985 points as market participants were momentarily relief on the geopolitical development in Eastern Europe.

“As such, forex markets will continue to observe development in Ukraine, as the US President has warned of the threats of an invasion by Russia in Ukraine still remains.

“Therefore, the market is going to be cautious but at the same time hopeful that the issues would be resolved soon,” he told Bernama.

Following that, Mohd Afzanimzam said the ringgit would hover around RM4.18 to RM4.19 today.

Meanwhile, the ringgit traded mixed against other major currencies.

The local note appreciated against the Japanese yen to 3.6154/3.6183 from 3.6193/6213 at Tuesday’s close and increased vis-a-vis the British pound to 5.6650/5.6691 from 5.6715/6742.

It depreciated against the Singapore dollar to 3.1103/3.1130 from 3.1097/1114 and dropped against the euro to 4.7502/4.7536 from 4.7487/7510 previously.