KUALA LUMPUR: The ringgit retreated from yesterday’s positive aspects to open lower towards the US greenback on Wednesday, owing to global geopolitical tensions, mentioned an analyst.
At 9 am, the native forex fell to 4.2150/2185 versus the dollar from 4.2080/2125 at Tuesday’s shut.
ActivTrades dealer Dyogenes Rodrigues Diniz mentioned the battle in Ukraine stays the principle driver within the markets in the meanwhile.
It was reported {that a} satellite tv for pc picture seems to point out our bodies mendacity on the street after Russian troops withdrew from Bucha, a city close to the Ukrainian capital, Kyiv.
Echoing Diniz, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid mentioned the US Dollar continues to march larger as threat aversion stays prevalent as Western allies are anticipated to up the ante on their sanctions towards Russia.
“This adopted a ugly discovery in Bucha the place acts of brutality and criminality had been at its worst,” he informed Bernama.
Besides, the Federal Reserve’s (Fed) hawkish financial stance, particularly in respect of the shrinking of the Fed’s stability sheet, which might be accelerated beginning subsequent month, would enhance the dollar.
“Given this, the US Dollar Index (DXY) rose 0.49 per cent to 99.486 level,” he mentioned.
As such, Mohd Afzanizam mentioned the ringgit might keep weak between RM4.21 and RM4.22.
At the opening, the ringgit was traded principally larger towards a basket of main currencies.
The native unit appreciated towards the British pound to five.5069/5115 from 5.5297/5356 at Tuesday’s shut and rose versus the euro to 4.5922/5961 from 4.6191/6241.
It additionally superior vis-a-vis the Singapore greenback to three.0979/1007 from 3.1048/1086 on Tuesday and gained towards the Japanese yen to three.4039/4070 from 3.4256/4295. – Bernama
