Signing of RCEP pushes ringgit higher against US dollar at opening

Signing of RCEP pushes ringgit higher against US dollar at opening

KUALA LUMPUR,: The ringgit opened higher today against the US dollar, supported by the signing of the Regional Comprehensive Economic Partnership (RCEP) yesterday.

The RCEP agreement was signed among its 15 participating countries. Participating countries include the 10 member countries of the Association of Southeast Asian Nations (Asean), as well as China, Japan, South Korea, Australia and New Zealand.

At 9.06 am, the local currency stood higher at 4.1150/1230 against the greenback compared with last Friday’s close of 4.1220/1260.

Axi chief global market strategist Stephen Innes said the signing of RCEP will be favourable for the local note as is the general tailwind from the Covid-19 vaccine which would reduce the chances for some of the markets more downside extreme scenarios.

“The greenback should also weaken a touch broadly under this scenario which should boost the ringgit today,” he told Bernama.

Against other major currencies, the ringgit was traded mostly lower at the opening today.

It fell against the Singapore dollar to 3.0570/0643 from last Friday’s close of 3.0558/0608 and decreased against the British pound to 5.4384/4494 from 5.4291/4360.

The local note weakened vis-a-vis the yen to 3.9329/9417 from 3.9246/9288 but appreciated against the euro to 4.8734/8845 from 4.8743/8802 previously.-Bernama