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Ringgit opens higher despite market uncertainty and recession fears

Ringgit opens higher despite market uncertainty and recession fears

KUALA LUMPUR: The ringgit improved upon its less-than-impressive performance yesterday to start today slightly higher against the US dollar.

This is despite market uncertainty over the US Federal Reserve’s (Fed) upcoming interest rate decision.

At 9am, the local note appreciated to 4.4040/4.4100 versus the greenback from yesterday’s close of 4.4050/4.4084.

On the year’s first day of trading yesterday, the ringgit had opened with a gain over the greenback only to lose the momentum to close lower.

SPI Asset Management managing partner Stephen Innes told Bernama that the old problems going into the new year continued to influence the broader markets, specifically uncertainty around the Fed’s terminal rate and whether the world would fall into a recession.

“Hence, the ringgit opened marginally higher today, given the risk-off impulses from the US market with lower stock and bond yields,” he said.

Meanwhile, the ringgit traded mostly lower against a basket of major currencies.

It fell against the British pound to 5.2800/5.2871 from 5.2538/5.2579 at yesterday’s close, depreciated against the euro to 4.6497/4.6561 from 4.6460/4.6495 previously, and weakened versus the Singapore dollar to 3.2773/3.2822 from 3.2768/3.2798.

However, the ringgit rose vis-a-vis the Japanese yen to 3.3616/3.3667 from 3.3755/3.3786 yesterday.- Bernama