Ringgit continues to open higher

The local note also traded easier against other major currencies

THE ringgit opened marginally higher versus the greenback for the second consecutive day amid tepid market sentiment, a dealer said.

At 9am, the local currency improved to 4.6350/6395 against the greenback from yesterday’s closing of 4.6380/6425.

ActivTrades trader Dyogenes Rodrigues Diniz said investors continued to flee from risky assets such as stocks and other currencies, and sought refuge in the safe haven US dollar and US government bonds.

He noted that the foreign exchange market’s performance was heavily influenced by the release of the US employment data and fast-rising inflation in Germany.

“In the US, the lower-than-expected ‘Initial Jobless Claims’ showed that the labour market is strong, as it is running at levels similar to those seen before the pandemic.

“A solid job market leaves room for the US Federal Reserve for further financial tightening through interest rate hikes,” he said in a note.

Diniz added that the inflation rate in Germany is at its highest level in more than 50 years, stoking concerns about the European Union’s economy.

Meanwhile, the ringgit traded easier against a basket of major currencies.

It fell vis-a-vis the euro to 4.5544/5588 from yesterday’s 4.4951/4995, slipped against the British pound to 5.1736/1786 from 5.0392/0441 yesterday and declined versus the Singapore dollar to 3.2358/2394 from 3.2228/2264.

However, the local note inched up against the Japanese yen at 3.2034/2067 from 3.2050/2084 at yesterday’s closing. — Bernama / pic TMR File