KUALA LUMPUR – The ringgit opened firmer against the US dollar on Tuesday amid a risk-on mode emerged, said an analyst.
At 8am, the local note appreciated to 4.3600/3720 versus the greenback from Monday’s close of 4.3700/3745.
This was despite the US Dollar Index (DXY) continuing to gain strength, climbing by 0.45% to 101.63 points.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said it seems that risk-off mode had become prevalent, leading to higher demand for safe haven currency.
However, talk of deflationary concern in China has resulted in market participants worrying about the global economic prospect, he told Bernama.
“All eyes are on the US consumer price index (CPI) which will be released on Wednesday, with consensus estimates pencilling in a 2.6% year-on-year rise in August versus the 2.9% recorded in the previous month,” he said.
Mohd Afzanizam added that the support and resistance levels are currently located at RM4.3259 and RM4.4390, respectively.
Meanwhile, the ringgit traded mostly higher against a basket of major currencies.
It fell vis-a-vis the Japanese yen to 3.0451/0537 from 3.0449/0482 at Monday’s close, but improved versus the euro to 4.8113/8245 from 4.8310/8360 yesterday and gained against the British pound to 5.6985/7142 from 5.7195/7253 previously.
The ringgit traded higher against Asean currencies.
It strengthened against the Thai baht to 12.8652/9116 from 12.8666/8851 yesterday and rose against the Indonesian rupiah to 282.0/283.0 from 282.6/283.1 previously.
The local note also climbed vis-a-vis the Singapore dollar to 3.3382/3479 from 3.3453/3490 at Monday’s close and inched up against the Philippine peso to 7.72/7.75 from 7.74/7.75. – September 10, 2024