Ringgit opens decrease amid world geopolitical tensions

KUALA LUMPUR: The ringgit retreated from yesterday’s positive factors to open decrease in opposition to the US greenback on Wednesday, owing to world geopolitical tensions, stated an analyst.

At 9 am, the native foreign money fell to 4.2150/2185 versus the buck from 4.2080/2125 at Tuesday’s shut.

ActivTrades dealer Dyogenes Rodrigues Diniz stated the struggle in Ukraine stays the primary driver within the markets for the time being.

It was reported {that a} satellite tv for pc picture seems to indicate our bodies mendacity on the street after Russian troops withdrew from Bucha, a city close to the Ukrainian capital, Kyiv.

Echoing Diniz, Financial institution Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid stated the US Greenback continues to march increased as danger aversion stays prevalent as Western allies are anticipated to up the ante on their sanctions in opposition to Russia.

“This adopted a grotesque discovery in Bucha the place acts of brutality and criminality had been at its worst,” he informed Bernama.

In addition to, the Federal Reserve’s (Fed) hawkish financial stance, particularly in respect of the shrinking of the Fed’s steadiness sheet, which might be accelerated beginning subsequent month, would enhance the buck.

“Given this, the US Greenback Index (DXY) rose 0.49 per cent to 99.486 level,” he stated.

As such, Mohd Afzanizam stated the ringgit may keep weak between RM4.21 and RM4.22.

On the opening, the ringgit was traded largely increased in opposition to a basket of main currencies.

The native unit appreciated in opposition to the British pound to five.5069/5115 from 5.5297/5356 at Tuesday’s shut and rose versus the euro to 4.5922/5961 from 4.6191/6241.

It additionally superior vis-a-vis the Singapore greenback to three.0979/1007 from 3.1048/1086 on Tuesday and gained in opposition to the Japanese yen to three.4039/4070 from 3.4256/4295. – Bernama


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