KUALA LUMPUR: The ringgit extended its gains against the US dollar to open higher today after the United States (US) economy started to show signs of short-term weakness, a dealer said.
At 9.04 am, the local note rose to 4.1460/1490 versus the greenback from Monday’s close of 4.1530/1575.
OANDA senior market analyst Edward Moya said the COVID-19 Delta variant’s impact on the US economy might be greater than anticipated, which does not bode well for third-quarter spending.
“The US consumer confidence showed a steep decline compared to Federal Reserve’s expectations which added to the worry that consumer spending is at the peak.
“The Conference Board noted that spending intentions for homes, autos and major appliances all had cooled somewhat, but there is some optimism for the travel and hospitality industries as consumers continue to make vacation plans for some time over the next six months,” he said.
At the opening bell, the local note was also traded higher against a basket of major currencies.
It improved against the Singapore dollar to 3.0812/0836 from 3.0848/0886 at Monday’s close and appreciated against the Japanese yen to 3.7626/7653 from 3.7813/7854 previously.
The ringgit rose against the British pound to 5.6949/6991 from 5.7116/7178 and strengthened vis-a-vis the euro to 4.8931/8966 from Monday’s close of 4.9001/9054.
The market was closed yesterday for the National Day celebration. – Bernama