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Ringgit opens lower on improved demand for greenback

KUALA LUMPUR: The ringgit opened lower against the US dollar today on better demand for the greenback as the US Treasury yields increased.

At 9 am, the local currency was traded at 4.1795/1825 against the greenback from 4.1715/1740 at Monday’s close.

According to news reports, the rise in the US yields is a sign that the US dollar could extend last year’s rally as markets anticipate the US Federal Reserve would initiate a cycle of interest-rate increases this year.

However, the ringgit’s losses was limited by the support of firmer oil prices.

At the time of writing, Brent crude was trading 0.38 per cent higher at US$79.38 per barrel.

On another note, Moody’s Analytics in its Asia Pacific Economic Preview report for Jan 3-7 week said Malaysia’s export sector outlook is expected to be positive in 2022, with trade primed to lead the country returning to the pre-pandemic growth in the middle of the year.

However, it said the Omicron variant and extreme weather may pose a risk to supply chains.

Meanwhile, the ringgit was traded mostly higher against a basket of other major currencies.

The local note gained versus the Singapore dollar to 3.0879/0904 from Monday’s close of 3.0917/0929 but marginally decreased against the Japanese yen to 3.6230/6259 from 3.6220/6245.

It appreciated vis-a-vis the British pound to 5.6331/6376 from 5.6414/6431 on Monday and strengthened against the euro to 4.7255/7282 from 4.7363/7396. – Bernama



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