KUALA LUMPUR, Feb 13 — The ringgit opened lower against the US dollar today, extending its downtrend from last Friday as concerns over further interest rate increases by the United States Federal Reserve (Fed) weighed on sentiments, analysts said.
At 9am, the ringgit eased to 4.3350/3395 against the greenback from Friday’s close of 4.3320/3350.
According to SPI Asset Management managing director Stephen Innes, with the Fed’s tone turning hawkish, a higher US Treasury yield environment is bad for the ringgit as it makes the Malaysian Government Securities (MGS) less attractive.
“Also, Asian markets are very defensive due to sluggish property sales in China, while more local investors believe that this year’s household consumption recovery could be slower than expected, given the scarring effects of property deleveraging,” he told Bernama.
Meanwhile, on the release of the US Consumer Price Index (CPI) January report tomorrow, he said a strong CPI reading could increase demand for the US dollar.
In the meantime, the ringgit traded higher against a basket of major currencies.
The local note ticked up against the Singapore dollar to 3.2579/2618 from Friday’s close of 3.2635/2663, and strengthened versus the euro to 4.6267/6315 from 4.6391/6424 previously.
It had also improved vis-à-vis the Japanese yen to 3.2916/2952 from 3.3089/3114 on Friday (February 10), and strengthened against the British pound to 5.2232/2287 from 5.2404/2440 previously.
— Bernama
