Ringgit shows marginal gains amid economic uncertainty

 

KUALA LUMPUR: 

The ringgit opened marginally higher against the US dollar as investors adopted a wait-and-see approach to the latest economic developments.

An analyst said global markets appear to be rebounding from Monday’s meltdown, indicating recovery. However, sentiment is likely to remain anxious.

At 8am, the ringgit edged up to 4.4700/4.4780 against the greenback from yesterday’s close of 4.4725/4.4770.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index (DXY) was also up 0.27% to 102.969 points.

“The Asian market might see a wait-and-see attitude among investors today. The US economy will continue to provide the context for risk aversion in the market.

Hence, we believe that the ringgit could remain sideways around RM4.47 to RM4.48 as anticipation for a rate hike in the US is still high,

 he noted.

Meanwhile, the ringgit traded lower against a basket of major currencies, except it appreciated against the British pound to 5.6697/5.6799 from 5.6837/5.6894 at Tuesday’s close.

It fell against the Japanese yen to 3.0889/3.0949 from 3.0879/3.0914 and weakened vis-a-vis the euro to 4.8839/4.8927 from 4.8799/4.8849 previously.

The local note also traded lower against Asean peers but was flat against the Philippine peso at 7.73/7.75.

It slipped against the Singapore dollar to 3.3718/3781 from 3.3694/3730, dropped against the Thai baht to 12.5912/12.6230 from 12.5848/12.6024, and inched down against the Indonesian rupiah to 276.4/277.1 from 276.6/277.1 at Tuesday’s close. - FMT