KUALA LUMPUR, April 7 — The ringgit maintained its upward momentum against the US dollar at opening for the second consecutive day as it continued to gain traction from the lower US yields.
If not for the lower crude oil, which is currently trading at US$62.66 per barrel, down by 0.13 per cent, the local note could attain higher buying support.
At 9.02am, the local unit stood at 4.1220/1270 versus the dollar from 4.1300/1330 at Tuesday’s close.
Axi chief global market strategist Stephen Innes said the local note remains mired between the competing forces of softer US yields and lower oil prices.
However, Innes said with the US yields basing, the fuel that drove the ringgit higher could be evaporating, causing the local currency to struggle to break higher ground.
“It is worrisome for commodity exporters like Malaysia, as China is telling banks to reign in lending, which softens China’s credit impulse, and not favourable for the ringgit as Malaysia has strong export ties with China,” he added.
The ringgit was unchanged against the Singapore dollar at 3.0791/0831 from 3.0791/0820 but rose to 5.7020/7093 from 5.7110/7168 compared with the British pound.
Vis-a-vis the yen, the ringgit slipped to 3.7555/7607 from 3.7376/7406 and down to 4.8928/9004 from 4.8775/8827 versus the euro.