Ringgit extends gains to open higher against US dollar

Ringgit extends gains to open higher against US dollar

KUALA LUMPUR: The ringgit extended yesterday’s gains to open higher versus the US dollar at the opening today, as the greenback slipped in late trading on Monday while traders weighed the coronavirus stimulus deal.

Fiscal stimulus negotiations continue to largely drive the direction of the US dollar, dealers said.

At 9 am, the local currency stood at 4.1400/1450 versus the greenback compared with 4.1415/1465 at Monday’s close.

Hong Leong Bank Bhd, in a note, said looking ahead, it turns neutral on the ringgit against the US dollar this week, expecting the pair to trade at circa 4.15 within a wide range of 4.13-4.17, given that greenback is subject to volatility ahead of the US election which is less than three weeks away.

Axi chief global market strategist Stephen Innes said the ringgit also continued to take the cue from the performance of the Chinese yuan.

“With investors possibly also taking stock of the recent China’s data, which was mixed at best, it could take a bit of steam out of local market inflows, especially as we near the US presidential election risk.

“And with oil prices precariously perched on the Covid-19 curve, it could be a cautious day for the ringgit,“ he said.

The world’s second-biggest economy and Malaysia’s major trading partner saw its economic growth of 4.9% in the third quarter of this year, quicker than the 3.2% posted in the second quarter.

However, China’s economy expanded less than the expected at 5.2%.

Meanwhile, the ringgit was traded mostly higher against other major currencies except the euro.

It improved against the Singapore dollar to 3.0497/0536 from Monday’s close of 3.0517/0556 and increased against the British pound to 5.3592/3674 from 5.3819/3900.

The local currency rose versus the yen to 3.9223/9274 from 3.9308/9367 but slipped against the euro to 4.8732/8807 from 4.8679/8755. — Bernama