Ringgit rises on US dollar correction

 

KUALA LUMPUR: 

The ringgit opened higher against a weakening US dollar today as the Dollar Index (DXY) experienced a correction, said an analyst.

At 8am, the local currency strengthened to 4.4650/4.4825 against the greenback, compared with Monday’s close of 4.4765/4.4820.

Overnight, the DXY fell 0.4% to 106.275, while the 10-year US Treasury yield dropped to 4.41% from 4.44%.

Bank Muamalat Malaysia Bhd, chief economist Afzanizam Rashid, attributed the DXY correction to technical factors, noting it had reached an overbought condition.

“As such, the ringgit could gain some ground today, possibly nearing its immediate support level of RM4.45,” he added.

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

It declined against the British pound to 5.6607/5.6829 from 5.6525/5.6594 and weakened against the euro to 4.7302/4.7488 from 4.7294/4.7352.

However, it appreciated against the Japanese yen to 2.8885/2.9002 from 2.8914/2.8953.

The local unit displayed mixed movements against regional currencies.

It strengthened against the Philippine peso to 7.61/7.64 from 7.63/7.64 and widened against the Indonesian rupiah to 281.5/282.8 from 282.2/282.7.

Conversely, it weakened against the Singapore dollar to 3.3353/3.3486 from 3.3307/3.3351 and slipped against the Thai baht to 12.8975/12.9631 from 12.8591/12.8808. - FMT