KUALA LUMPUR, June 29 — The ringgit opened lower against the US dollar in early trading today in a cautious mode as the greenback remained strong as a safe-haven currency amid fears of a second wave of Covid-19.
As at 9.08am, the ringgit was quoted at 4.2900/2970 against the US dollar from 4.2890/2930 at the close last Friday.
Ambank Research in a note today said the slide in the ringgit, which recently fell 0.29 per cent to 4.291, was partly due to S&P Global Ratings’ revision of Malaysia’s economic outlook.
“The agency on Friday downgraded our domestic economic outlook to negative from stable, reflecting heightened risks of a further deterioration in its fiscal settings, related to the Covid-19 pandemic.
“We expect the ringgit to trade between our support level of 4.2730 and 4.2811 while our resistance is pinned at 4.2943 and 4.3014,” it added.
Meanwhile, the ringgit traded mostly higher against major benchmark currencies except for the euro
It rose against the Singapore dollar to 3.0788/0849 from 3.0827/0865, and increased against the yen to 3.9985/0054 from 4.0114/0155 at the close last Friday.
The local note was higher against the British pound at 5.2986/3085 from 5.3124/3190, but fell against the euro to 4.8177/8268 from 4.8118/8167 previously.