Ringgit opens slightly higher despite bearish outlook

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KUALA LUMPUR: The ringgit prolonged yesterday’s beneficial properties to open slightly higher in opposition to the US greenback right now on continued shopping for curiosity, despite a bearish outlook for rising currencies, together with the ringgit, sellers stated.

At 9 am, the native forex edged as much as 4.4350/4390 versus the dollar from Wednesday’s shut of 4.4360/4385.

ActivTrades dealer Dyogenes Rodrigues Diniz stated the dollar took on a constructive tone, supported by the discharge of Consumer Price Index (CPI) information which got here in above expectations at 9.1 per cent versus the forecast of 8.8 per cent.

“This was the biggest enhance in inflation since November 1981, making room for extra extreme measures by the United States (US) Federal Reserve (Fed) which is prone to speed up the US rates of interest hike.

“If the rate of interest rises in a short time within the US, it will trigger international locations to begin promoting their native currencies to purchase extra {dollars} after which purchase US authorities bonds,” he informed Bernama right now.

Meanwhile, the native unit was traded largely higher in opposition to a basket of main currencies.

It appreciated in opposition to the British pound to five.2599/2647 from 5.2753/2783 on Wednesday, elevated versus the euro to 4.4456/4497 from 4.4524/4549 and strengthened vis-a-vis the Japanese yen to three.2159/2190 from 3.2358/2379 yesterday.

However, the ringgit was decrease in opposition to the Singapore greenback at 3.1781/1816 from 3.1559/1582 beforehand. – Bernama



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