Ringgit opens slightly higher against US dollar

The local note, however, is traded lower against other major currencies excluding the yen

THE ringgit rebounded from its seven consecutive days of losses to open slightly higher against the US dollar today, boosted by renewed buying interest, a dealer said.

At 9am, the local note rose to 4.7135/7180 from yesterday’s close of 4.7150/7185. 

ActivTrades trader Dyogenes Rodrigues Diniz said the dollar extended its gains against the ringgit yesterday, driven by the US Federal Reserve’s repeated interest rate hikes to contain US inflation. 

Yesterday, the local note had edged closer to its all-time low of 4.725 recorded on Jan 7, 1998, as sentiment in the local market was influenced by the robust greenback.

“In Malaysia, the country’s central bank has adopted a milder inflation control stance, raising the interest rate from 1.75% in early 2022 to 2.5% currently, which is 0.75% below the US interest rate (now at 3.25%).

“Given the difference in the interest rates in the two currencies, investors tend to sell the ringgit and buy US dollar, as their capital can achieve better yields in the US at the moment, and fundamentals continue to point towards an appreciation of US dollar versus the ringgit in the short to medium term,” he said. 

Meanwhile, the ringgit was traded mostly lower against a basket of major currencies, except for the Japanese yen.

The local note depreciated against the Singapore dollar to 3.3168/3204 from yesterday’s 3.3053/3080, fell versus the British pound to 5.3503/3554 from 5.3199/3239, and weakened against the euro to 4.6381/6425 from 4.5981/6015.

The ringgit, however, rose vis-a-vis the Japanese yen to 3.3168/3204 from 3.1712/1738 previously. — Bernama / pic TMR FILE