Ringgit opens higher as greenback weakens amid AI investment concerns
KUALA LUMPUR, Oct 23 — The ringgit opened higher today as the greenback weakened after equity prices fell amid heightened concern over artificial intelligence (AI)-related investments.
At 8 am, the ringgit rose to 4.0785/0855 against the greenback from yesterday’s close of 4.0815/0850.
The ringgit opened higher on Friday as the greenback weakened after equity prices fell amid heightened concern over artificial intelligence (AI)- related investment.
At 8 am, the ringgit rose to 4.0785/0855 against the greenback from Thursday’s close of 4.0815/0850.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the concerns stemmed from investors’ doubts over whether further investments in AI-related companies would generate returns in a timely manner.
He also said the possibility of an interest rate hike by the Federal Reserve (Fed) is diminishing as two- and 10-year US Treasury yields fell by 16 and 17 basis points to 4.64 per cent and 4.95 per cent, respectively.
Mohd Afzanizam added that the US Dollar Index (DXY) eased 0.15 per cent to 101.625 points.
“However, there is growing concern about growth prospects, making the rate hike decision appear to be unrealistic. As such, ringgit would likely maintain its narrow range trade today as market sentiments look defensive,” he told Bernama.
The ringgit traded mostly lower against a basket of major currencies at the opening.
It edged up vis-a-vis the euro to 4.5765/5843 from 4.5790/5830, but eased versus the Japanese yen to 2.6054/6100 from 2.6035/6057 at Thursday’s close and inched down against the British pound to 5.4664/4758 from 5.4659/4706.
Meanwhile, the ringgit performed mixed against its ASEAN peers.
It gained versus the Thai baht to 12.0852/1124 from 12.0973/1120 at yesterday’s close, and rose against the Indonesian rupiah to 225.8/226.3 from 225.9/226.3. The ringgit was flat vis-a-vis the Philippine peso at 6.42/6.43.
The ringgit eased against the Singapore dollar to 3.1941/1998 from 3.1917/1947 at yesterday’s close.
