Ringgit opens lower against US dollar on mild profit taking

Investors are worry about the US Fed’s aggressively tightening monetary policy

THE ringgit retreated against the US dollar this morning following mild profit-taking due to worries over the US Federal Reserve (Fed) aggressively tightening monetary policy, dealers said.

At 9am, the local note depreciated by 15 basis points to 4.7160/7200 from yesterday’s close of 4.7145/7165.

ActivTrades trader Dyogenes Rodrigues Diniz said investors are seeking more visibility on the pace of inflation and awaiting upcoming data from the eurozone, the UK and Canada.

“In Europe, the market is expecting the Consumer Price Index data, an indicator of inflation, to show a reading of 10%, the highest level in 30 years, and it is also expected to be at 10% in the UK. 

“From a technical point of view, the dollar is in an important resistance region against the ringgit and there are some overbought signals from the Relative Strength Index indicator, which could give way for a retracement in the near future,” he told Bernama.

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

It fell versus the British pound to 5.3479/3525 from 5.3118/3141 at yesterday’s close, eased against the Singapore dollar to 3.3218/3251 from 3.3168/3184 yesterday and weakened against the euro to 4.6504/6544 from 4.6372/6391 previously.

However, the ringgit gained vis-a-vis the Japanese yen to 3.1611/1642 from 3.1630/1646 at the close yesterday. — Bernama / pic TMR