Solid PMI in Asia drives Ringgit higher by 70 basis-point at opening

Solid PMI in Asia drives Ringgit higher by 70 basis-point at opening

KUALA LUMPUR: The ringgit reversed recent losses to open firmer against the US dollar today, as it tracked other Asian currencies’ gains, lifted by a solid November manufacturing Purchasing Managers’ Index (PMIs) in the region, along with stimulus and Covid-19 vaccine optimism.

At 9am, the local note was 70 basis points firmer at 4.0690/0750 against the greenback from 4.0760/0800 at Tuesday’s close.

Axi chief global market strategist Stephen Innes said relatively attractive yields versus the Group of Ten (G10) suggested that investment flow into local bond and equity markets in the region would continue.

On the ringgit, he, however, expressed concern that the upside would be capped by the Organisation of the Petroleum Exporting Countries (OPEC) quota extension meeting.

“Local traders might turn a cautious eye on the OPEC quota extension meeting proceedings, which are now presenting a crater on the road instead of a minor speed bump,” he told Bernama today.

Yesterday, it was reported that the scheduled OPEC+ meeting would be pushed back to Dec 3,2020 to give ministers more time to reach an agreement over production.

Back home, the ringgit was traded mostly lower against other major currencies, except the yen.

It weakened against the Singapore dollar to 3.0429/0486 from 3.0388/0430 at the close on Tuesday, retreated against the euro to 4.9092/9169 from 4.8826/8891 and declined against the pound to 5.4602/4687 from 5.4427/4501.

Vis-a-vis the yen, the ringgit, however, strengthened to 3.8994/9055 from 3.9080/9129 at Tuesday’s close.-Bernama