Ringgit opens higher versus US dollar for 3rd day running

The decline of the greenback is mainly due to the lower-than-expected US Core PCE Price Index

THE ringgit continued to open higher against the US dollar for the third consecutive day today, following the release of the US initial economic data that indicated inflation concerns, an analyst said.

At 9am, the local note rose to 4.3900/3995 against the US dollar from yesterday’s close of 4.4030/4100.

ActivTrades trader Dyogenes Rodrigues Diniz said the greenback continued to decline against the ringgit today and is now trading below the 4.4000 level after the release of the lower-than-expected US Core Personal Consumption Expenditure (PCE) Price Index — a key indicator of purchasing trends and inflation.

“The lower reading suggests that the US Federal Reserve may adopt a more dovish monetary policy stance, which accelerated the downward movement in the greenback against the ringgit,” he told Bernama.

From a technical point of view, Diniz noted that the US dollar/ringgit has breached an important support region at 4.4430, while the next support level is at 4.3000.

Meanwhile, the ringgit was traded mostly lower against a basket of major currencies in the opening session.

The local note fell versus the Japanese yen to 3.2399/2471 from yesterday’s close of 3.2282/2336, depreciated against the British pound to 5.3698/3815 from 5.3501/3586 and weakened vis-a-vis the euro to 4.6130/6230 from 4.5976/6049 previously.

However, it rose against the Singapore dollar to 3.2403/2476 from 3.2420/2474 yesterday. — Bernama