KUALA LUMPUR, Feb 7 — The ringgit opened lower against the US dollar but is anticipated to rebound today, supported by an announcement expected from China on a strong economic boost.
At 9.01am, the ringgit stood at 4.7590/7625 against the greenback compared to yesterday’s closing rate of 4.7570/7620.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Chinese government is likely to reveal a forceful economic stimulus amid criticism that it is not doing enough to bolster investor confidence.
“A slew of Purchasing Managers Index data also suggest that major economies are still holding up quite well, especially for the services sector,” he added.
He reiterated that as the ringgit has been in an oversold condition, some correction should be expected, which means the currency might stage a rebound against the US dollar today.
The ringgit was traded lower against a basket of major currencies.
It declined versus the Japanese yen to 3.2188/2214 from 3.2012/2048 at Tuesday’s close, depreciated against the euro to 5.1202/1240 from 5.1109/1163 yesterday, and fell vis-a-vis the British pound to 5.9973/6.0017 from 5.9653/9715 previously.
The local note traded mostly lower versus Asean currencies.
The ringgit edged up against the Indonesian rupiah to 302.4/302.9 from 302.8/303.2 at yesterday’s close.
However, it eased versus the Singapore dollar to 3.5425/5454 from 3.5321/5361 yesterday, fell vis-a-vis the Thai baht to 13.3864/4019 from 13.2970/3169, and slipped against the Philippine peso to 8.48/8.50 from 8.45/8.46.
— Bernama
