Ringgit opens easier against firmer US dollar

Ringgit opens easier against firmer US dollar

KUALA LUMPUR: The ringgit opened marginally lower on firmer US dollar amid news that the United States has an advantage in growing its economy and vaccinating its population against Covid-19.

At 9am, the ringgit eased to 4.0450/0550 versus the greenback from 4.0400/0450 last Friday.

Axi chief global market strategist Stephen Innes said the easier ringgit may be temporary as oil prices continue to improve amid expectations of risk reduction on emerging currencies which include the ringgit.

As at time of writing, benchmark Brent crude was 0.96 higher at US$56.89 per barrel.

“Demand may be slightly weaker, tracking the slower economic recovery in China and mobility restrictions amid the Chinese New Year season.

“However, I think this is transient and I expect markets will look through it,” he told Bernama.

Meanwhile, the ringgit was traded mixed against other major currencies.

It appreciated against the Singapore dollar to 3.0356/0443 from 3.0369/0416 on Friday but fell versus the Japanese yen to 3.8568/8667 from 3.8524/8575.

The local currency weakened against the British pound to 5.5303/5444 from 5.5207/5291 but advanced vis-a-vis the euro to 4.8807/8944 from 4.8945/9021 previously.

The market was closed last Thursday for the Thaipusam celebration and on Monday for the Federal Territory Day holiday. -Bernama