KUALA LUMPUR: The ringgit weakened towards the US greenback on the opening at the moment as buyers’ expectations on the Federal Reserve rate hike remained intact and lent some assist for the greenback, stated an analyst.
At 9 am, the native notice dropped to 4.2320/2340 towards the buck from 4.2290/2320 at Friday’s shut.
Kenanga Investment Bank stated the ringgit could strengthen momentarily close to the 4.22 stage as the 10-year US Treasury yield dropped to beneath the 1.35 per cent stage on Friday.
“This is amid a disappointing November US jobs report. However, the continual unfold of the Omicron instances around the globe will proceed to unnerve buyers, sparking a sell-off in risk-on property,” the financial institution stated in a notice at the moment.
Kenanga stated a possible rise within the US inflation rate will proceed to push the US greenback index nearer to the 97.0 zone, weakening the ringgit to between 4.23 and 4.25 vary.
“Based on our technical evaluation, the indicator means that the ringgit could respect barely towards the US greenback by 0.12 per cent to 4.226 this week,” it added.
The native notice was traded lower vis-a-vis a basket of main currencies.
The ringgit fell towards the Singapore greenback to three.0857/0876 from 3.0844/0870 at Friday’s shut, eased versus the British pound to five.5994/6020 from 5.6182/6222.
It additionally weakened towards the Japanese yen to three.7438/7459 from 3.7316/7346 and went down towards the euro to 4.7784/7806 from 4.7771/7805 beforehand. – Bernama
