KUALA LUMPUR: The ringgit opened marginally lower against the greenback amid growing optimism that the US and China are closer to a truce in their trade dispute.
Axi Trader Asia-Pacific market strategist Stephen Innes said there was a significant carry over from last week’s performance as both trade optimism and strong the US economic data continued to resonate which saw inflows into the FTSE Bursa Malaysia KLCI.
At 9.10am, the ringgit was quoted at 4.1510/1550 against the greenback from 4.1500/1540 at Monday’s close.
He said if the trade talks progress in amicable terms, the Chinese yuan should push lower and as well as to the local currency.
However, the reference rate for Chinese yuan was very market-friendly as the People’s Bank of China (PBoC) broke an almost two months tightly controlled range to the stronger yuan side.
“Probably they are not opposed to a slightly stronger yuan, hence this is also very supportive for the local note to lengthening its performance,” he said.
At the opening, the ringgit traded higher against other major currencies.
It rose against the Singapore dollar to 3.0536/0576 from 3.0571/0612 on Monday and advanced against the Japanese yen to 3.8191/8239 from 3.8288/8335 yesterday.
Vis-a-vis the euro, the local unit strengthened to 4.6188/6237 from 4.6326/6388 while against the British pound, it improved to 5.3486/3541 from 5.3614/3678 yesterday. — Bernama
source https://www.thesundaily.my/business/ringgit-marginally-lower-against-greenback-at-opening-KF1575480
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