The decline by other currencies like euro and yuan may exert further external pressure on the local unit
THE ringgit opened lower against the US dollar today due to the lack of buying interest, said a dealer.
At 9.18am, the local currency stood at 4.4795/4835 against the greenback from last Friday’s close of 4.4655/4675.
In a note, Kenanga Research said the local unit may struggle to maintain its upward momentum against the greenback following the US Federal Reserve’s reiteration of its hawkish stance during the Jackson Hole symposium last Friday.
Additionally, the research house said the euro’s latest decline against the greenback, coupled with China’s deteriorating economic prospects may exert external pressure on the local unit.
“However, the ringgit may continue to benefit from the elevated commodity prices and positive Malaysia-US government bond yield spread,” it said.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
The local note appreciated against the euro to 4.4499/4539 from last Friday’s close of 4.4668/4688 and was higher against the Singapore dollar at 3.2026/2059 from 3.2140/2159 previously.
It had also advanced against the British pound to 5.2321/2367 from 5.2831/2855 last week and improved against the Japanese yen to 3.2387/2419 from 3.2619/2636 last Friday. — Bernama / pic TMR