KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on renewed buying interest despite China’s further COVID-19 restrictions as well as uncertainty on the hung Parliament and government formation in Malaysia, said an analyst.
At 9 am, the local note rose to 4.5745/5830 against the greenback from Monday’s close of 4.5770/5850.
SPI Asset Management managing director Stephen Innes said the US dollar was charging again after last week’s retreat against the backdrop of weaker sentiment due to China’s rising COVID-19 cases and weaker German Producer Price Index (PPI), which fell for the first time in over two years.
“I also think this week’s Federal Open Market Committee (FOMC) minutes will be more hawkish than expected,” he told Bernama.
Thus, he said, the ringgit was expected to trade weaker today as China’s reopening play got dumped, coupled with the risk from the 15th General Election results.
Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said traders were awaiting the release of the United States (US) Building Permits data for more clues on the state of the real estate sector.
“We are expecting to see low volatility in the market around Nov 24 due to the Thanksgiving holiday in the US.
“From a technical point of view, the local currency could reach up to the 4.6250 against the US dollar, where it should find some resistance,” he said.
Meanwhile, the ringgit traded mostly lower against a basket of major currencies.
It fell versus the Singapore dollar to 3.3129/3196 from 3.3107/3169 at Monday’s close, slid against the euro to 4.6902/6989 from 4.6827/6909 previously and depreciated versus the British pound to 5.4180/4281 from 5.4036/4131.
However, the local currency appreciated vis-a-vis the Japanese yen to 3.2222/2284 from 3.2278/2337 yesterday.