Ringgit Opens Slightly Lower on Continued US Dollar Support | Money
KUALA LUMPUR, Jan. 21 – The ringgit opened slightly lower against the US dollar on Friday as mixed signals from the stock market continue to support the greenback, an analyst said.
At 9:01 am, the local rating fell to 4.1910/1935 against the greenback from 4.1925/1950 at yesterday’s close.
Speaking to Bernama, Bank Islam Malaysia Bhd’s chief economist, Mohd Afzanizam Abdul Rashid, said the sell-off in US stocks suggests market participants have become increasingly wary of the prospect of a rise in interest rates.
The yield on 10-year US Treasuries also fell to 1.78%, indicating that investors may have turned to risk-free assets to hedge against marker volatility.
He said such a risk aversion mode was clearly benefiting the US Dollar, with the US Dollar Index (DXY) hitting 95.735 points.
“Following this, the ringgit/US dollar is likely to rely on a weaker trajectory today.
“The Monetary Policy Committee of Bank Negara Malaysia (BNM) kept the overnight rate (OPR) unchanged at 1.75%, indicating that the BNM is in no rush to increase the OPR. and implies that the ringgit could remain weak for the time being,” he said. .
Overall, the local note traded mostly higher against a basket of other major currencies.
The ringgit ended higher against the euro at 4.7371/7405 from 4.7521/7555 at Thursday’s close and rose against the Singapore dollar at 3.1097/1124 from 3.1103/1130.
The local note rose against the British pound to 5.6931/6971 from 5.7066/7107 yesterday but fell against the Japanese yen to 3.6831/6861 from 3.6640/6670. — Bernama