KUALA LUMPUR, Sept 5 — The ringgit opened lower against the US dollar today as market players have become more risk averse due to challenging global economic prospects, an analyst said.
At 9am, the local note eased to 4.6565/6590 against the US dollar from 4.6535/6575 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said he believes the ringgit will continue to weaken against the US dollar despite China’s encouraging stimulus measures.
China has stepped up measures to boost the country’s faltering economy, with top banks paving the way for further cuts in lending rates, including relaxing restrictions on home purchases.
“Meanwhile, crude oil prices are rising as Opec+ members are expected to keep supplies tight in order to support prices. In that sense, the direction is quite blurry but one thing for sure is that the hawkish US Federal Reserve (Fed) will keep the US dollar at a higher level,” Mohd Afzanizam told Bernama.
Meanwhile, the ringgit opened mostly lower against a basket of major currencies.
The local note decreased versus the euro to 5.0258/0285 from 5.0230/0273 at Monday’s close, slipped against the British pound to 5.8812/8843 from 5.8774/8824 but appreciated against the Japanese yen to 3.1781/1802 from 3.1786/1818 previously.
At the same time, the ringgit was traded mixed against other Asean currencies.
It was stronger against the Singapore dollar at 3.4358/4381 from 3.4361/4393 at the close on Monday, improved vis-a-vis the Thai baht to 13.1950/2069 from 13.2089/2259, was flat against the Philippine peso at 8.21/8.23 and slid versus the Indonesian rupiah at 305.4/305.8 from 305.2/305.7 previously. — Bernama
