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Saturday, February 22nd, 2020

Ringgit opens higher at 4.0650/0680

by December 21, 2017 General

A Malaysia Ringgit note is seen in this illustration photo June 1, 2017. — Reuters picA Malaysia Ringgit note is seen in this illustration photo June 1, 2017. — Reuters picKUALA LUMPUR, Dec 21 — The ringgit opened higher against the US dollar today, as the local note remained attractive due to its better position than regional peers to withstand a steeper US yield curve, a dealer said.

At 9am, the local unit stood at 4.0650/0680 from 4.071/0770 at yesterday’s closing.

The primary focus overnight was the US yield curve which continued to steepen as US 10-year yields were trading at a nine-month high in the wake of the Tax Reform Bill.

OANDA Head of Trading Asia-Pacific, Stephen Innes, said the the ringgit has positioned itself well compared to its peers.

However, holiday thinned-trading conditions had long-term investors staying on to the sidelines until early 2018 which was likely to temper optimism, he said.

“But the ringgit remains constructive, and one can only suspect year-end market conditions are holding the local note back from testing this year’s ringgit against the dollar lows,” he said in a statement.

The ringgit was traded mostly higher against a basket of major currencies.

The local note gained higher against the Singapore dollar to 3.0234/0263 from yesterday’s 3.0247/0310 and traded higher against the British pound at 5.4333/4393 from 5.4515/4607 yesterday.

It eased against the euro to 4.8268/8308 from yesterday’s close of 4.8188/8264, It was lower against the yen to 3.5888/5917 from 3.5976/6035 yesterday. — Bernama