KUALA LUMPUR, March 30 ― The ringgit opened higher against the US dollar today, as the greenback retreated amidst the risk-on mode in the United States’ (US) equity market, said an analyst.
At 9.00am, the local currency strengthened to 4.2060/2100 against the greenback, compared to 4.2120/2155 at yesterday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) declined by 0.69 per cent to 98.40 points overnight, while the S&P 500 index rose 1.23 per cent to close at 4.361.60 points, signalling a “risk-on mode” in the US market.
“Despite that, the situation is still fluid and investors would want to get more information as the situation develops,” he told Bernama today.
He noted that the ringgit is poised for appreciation, given the possibility of Russia’s de-escalation of military aggression.
According to news reports, both Russia and Ukraine were cautiously optimistic after negotiators concluded a round of peace talks, with Russia saying that it will reduce some military activity “to increase mutual trust”.
“So far, there seems to be not much enthusiasm among Ukraine’s officials as the move to cut back on Russia’s military operation in northern Ukraine is seen to be a tactical move,” he added.
At the opening, the ringgit was traded mostly lower against a basket of major currencies, except versus the British pound.
The local unit rose against the British pound to 5.5086/5138 from 5.5114/5160 at Tuesday's close, but slipped versus the euro to 4.6674/6718 from 4.6492/6531 previously.
The ringgit had also eased vis-a-vis the Singapore dollar to 3.1013/1047 from 3.0966/0994 yesterday and fell against the yen to 3.4332/4367 from 3.4042/4073 previously. ― Bernama
