Ringgit opens lower against US$ amid risk-off sentiment

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KUALA LUMPUR: The ringgit opened lower against the US greenback at present because the buck continued to strengthen its attraction as a safe-haven foreign money amidst the risk-off sentiment surrounding the market, analysts mentioned.

At 9 am, the native foreign money slipped to 4.4220/4255 against the US greenback in contrast with 4.4185/4200 on the shut on Tuesday.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid mentioned the risk-off sentiments have grow to be extra prevalent with the 10-year United States (US) Treasury yield falling beneath the three per cent degree as demand for safe-haven devices strengthens.

“It seems that urge for food for cash-like devices is rising regardless of giving low returns, and that will imply the primary focus now’s to guard the precept of funding.

“The US greenback index (DXY) has surpassed 106 factors in the mean time as demand for the buck has escalated. In that sense, dollar-ringgit ought to stay on the prevailing degree of round RM4.41,” he advised Bernama.

He added that the main focus can be on Bank Negara Malaysia’s Monetary Policy Committee’s choice on the Overnight Policy Rate at present, noting {that a} 25 foundation factors hike would lend some assist to the ringgit.

Meanwhile, ActivTrades dealer, Dyogenes Rodrigues Diniz mentioned the bullish US greenback motion is as a result of uncertainties surrounding Russia’s new offensive in Ukraine, which resulted in traders fleeing to safe-haven belongings such because the buck.

“Investors are actually keenly awaiting the discharge of the ADP Non-Farm employment change information — as a consequence of be launched on Wednesday — to gauge the state of the US labour market. The remaining and most vital information will come out on Friday with the discharge of the Non-Farm Payroll.

“The expectation is that 268,000 new jobs have been created,” he mentioned.

He added that from the technical perspective, the US greenback/ringgit pair is getting nearer to an vital resistance area.

“If it manages to interrupt beneath 4.4050, it might drop to 4.3860,” he mentioned.

Meanwhile, the ringgit was traded larger against a basket of main currencies, besides the Singapore greenback.

The native foreign money had gained against the British pound at 5.2909/2951 against Tuesday’s shut of 5.3168/3186 and rose vis-a-vis the euro to 4.5392/5428 from 4.5511/5526 yesterday.

However, it had eased against the Singapore greenback to three.1487/1514 from 3.1486/1502 and weakened versus the Japanese yen to three.2606/2636 from 3.2530/2543 on Tuesday. – Bernama



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