KUALA LUMPUR, Feb 3 — The ringgit opened lower on the strengthening of the US dollar on Wednesday amid the United States (US) proposed US$1.9 trillion coronavirus relief package.
The local note slightly weakened to 4.0440/0480 against the greenback from 4.0430/0460 on Tuesday.
An analyst said the impact on the ringgit was, however, cushioned by the firmer oil prices which continued their bullish outlook after global crude benchmarks were optimistic of the US economic recovery and the Organisation of the Petroleum Exporting Countries (OPEC) production levels, which rose less than expected in January.
Meanwhile, Axi chief global market strategist Stephen Innes said it is possible that investors are pivoting out of Asia due to fears that China policymakers may increase interest rate to cool gains in share prices and property markets.
“As the US vaccination rollout appears to be accelerating at full bore, investors will keep close tabs on capital markets outflow data this week,” he said in a note.
On another hand, the ringgit was mostly lower against other major currencies.
It slightly declined against the Singapore dollar to 3.0374/0416 from Tuesday’s 3.0371/0400 but appreciated against the Japanese yen to 3.8522/8571 from 3.8530/8563 previously.
The local currency increased against the British pound to 5.5261/5332 from 5.5332/5382 and rose vis-a-vis the euro to 4.8706/8770 from 4.8787/8827.
— Bernama
