KUALA LUMPUR, Feb 8 — The ringgit opened lower against the firmer US dollar today as the United States (US) equities continued to perform favourably, said an analyst.
At 9.37am, the ringgit stood at 4.7630/7665 against the greenback compared to yesterday’s closing rate of 4.7570/7645.
The S&P 500 index had inched closer towards 5,000 points, while the 10-year US Treasury saw a lower yield of 4.093 per cent, said Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid.
He said this suggests positive demand from investors, amidst the US Federal Reserve’s stance that rates may not be reduced so soon.
“On that note, it remains highly uncertain that this will translate into stronger ringgit although technical signs are at an oversold, a situation where correction is likely to occur.
“At best, we believe the ringgit would linger around RM4.76 against the US dollar,” he told Bernama.
He said the focus today would be on whether China’s consumer price index (CPI) would continue to record a negative print for the fourth month in a row.
“If that is the case, it could raise the question of whether China’s government would up their game to increase the economic stimulus to stimulate economic activities,” he said.
Meanwhile, the ringgit traded lower against a basket of major currencies, except against the Japanese yen where it rose to 3.2137/2163 from 3.2159/2212 at Wednesday’s close.
It depreciated against the British pound to 6.0152/0196 from 6.0095/0190 yesterday and slipped versus the euro to 5.1326/1364 from 5.1233/1314 previously.
The local note was also traded lower versus other Asean currencies.
The ringgit declined against the Singapore dollar to 3.5460/5489 versus 3.5415/5474 on Wednesday and was easier versus the Thai baht at 13.3676/3819 from 13.3650/3917 yesterday.
It was also lower against the Indonesian rupiah at 304.5/305.0 compared to 304.2/304.8 at the close on Wednesday and slipped versus the Philippines’ peso to 8.51/8.53 from 8.50/8.52 previously.
— Bernama
