Ringgit rebounds to open higher against US dollar

Ringgit rebounds to open higher against US dollar

KUALA LUMPUR: The ringgit rebounded to open higher versus the US dollar today, as the greenback retreated amidst uncertainties surrounding the country’s Covid-19 fiscal stimulus.

Hopes of a United States (US) stimulus deal fuelled risk appetites, relegating the dollar to multi-day lows, dealers said.

At 9 am, the local currency stood at 4.1400/1450 versus the greenback compared with 4.1480/1550 at Tuesday’s close.

Axi chief global market strategist Stephen Innes said the US dollar is trading lower on hopes for a US stimulus deal before the week is out, with currency traders still holding their stimulus lottery ticket.

“Also, the Chinese yuan continues to trade well, supported by a surging consumption engine that will significantly benefit locals’ economies and currencies that export into the mainland, like the ringgit,” he said to Bernama.

Meanwhile, Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said China’s gross domestic product growth of 4.9 per cent in the third quarter of 2020 gave hope that the global economic recession may not be too excessive.

“We have also seen the International Monetary Fund trimming down their global contraction forecast to -4.4 per cent recently.

“Apart from that, there is also the forthcoming development on the Covid-19 vaccine. As such, ringgit could be inclined to appreciate around RM4.14 against the greenback today,” he added.

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

It improved against the Singapore dollar to 3.0522/0570 from Tuesday’s close of 3.0561/0624 and increased against the British pound to 5.3654/3727 from 5.3754/3861 previously.

The local currency rose versus the yen to 3.9286/9338 from 3.9291/9369 yesterday but slipped against the euro to 4.8989/9052 from 4.8963/9062 previously.-Bernama