Ringgit opens marginally greater on renewed shopping for curiosity

KUALA LUMPUR: The ringgit opened barely greater towards the US greenback at this time on renewed shopping for curiosity of the native foreign money, mentioned a vendor.

At 9 am, the native foreign money stood at 4.2175/2220 from 4.2185/2215 at Monday’s shut.

A vendor mentioned this was in step with improved sentiment on the native fairness market with the FTSE Bursa Malaysia KLCI barometer index opening 2.74 factors higher at 1,601.66.

Nevertheless, the US greenback continued to regain its safe-haven foreign money enchantment amid uncertainties surrounding the market which noticed the US Greenback Index (DXY) rising fairly considerably by 0.39 per cent to 98.989 factors, Financial institution Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid advised Bernama.

“The equities made a robust rebound with know-how bellwether Nasdaq gaining 1.9 per cent to shut at 14,532.55 factors and Brent crude hovering at US$108 per barrel regardless of the plan to launch oil from the Strategic Petroleum Reserve by the US to stabilize oil costs.

“In the meantime, the US Treasury yield curve was inverted when the two-year notes yielded greater than the 10-year yield, a phenomenon that’s carefully related to a potential recession on the horizon,” he mentioned, including that the monetary market was very fuzzy with every asset class giving a combined sign.

Mohd Afzanizam mentioned in gentle of the unsettling results of the army battle in Ukraine, together with combined indicators from the monetary market, the demand for safe-haven currencies, particularly the US greenback, will doubtless proceed to dominate the foreign exchange market sentiments.

As such, he opined that the ringgit ought to keep weak on the prevailing degree of round RM4.22 at this time.

On the opening, the ringgit was traded principally combined towards a basket of main currencies.

The native unit appreciated towards the British pound to five.5296/5355 from 5.5330/5369 at Monday’s shut and rose towards the euro to 4.6291/6341 from 4.6441/6474.

It fell vis-a-vis the Singapore greenback to three.1091/1127 from 3.1082/1109 on Monday and slid towards the Japanese yen to three.4420/4462 from 3.4414/4442. – Bernama


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