Ringgit opens slightly higher against US dollar

KUALA LUMPUR - The ringgit extended yesterday's gains to open slightly higher against the US dollar today on continued buying interest, despite a bearish outlook for emerging currencies, including the ringgit, dealers said.

At 9am, the local currency edged up to 4.4350/4390 versus the greenback from Wednesday's close of 4.4360/4385.

ActivTrades trader Dyogenes Rodrigues Diniz said the greenback took on a positive tone, supported by the release of Consumer Price Index (CPI) data which came in above expectations at 9.1 per cent versus the forecast of 8.8 per cent.

"This was the largest increase in inflation since November 1981, making room for more severe measures by the United States (US) Federal Reserve (Fed) which is likely to accelerate the US interest rates hike.

"If the interest rate rises very quickly in the US, this will cause countries to start selling their local currencies to buy more dollars and then buy US government bonds," he told Bernama today.

Meanwhile, the local unit was traded mostly higher against a basket of major currencies.

It appreciated against the British pound to 5.2599/2647 from 5.2753/2783 on Wednesday, increased versus the euro to 4.4456/4497 from 4.4524/4549 and strengthened vis-a-vis the Japanese yen to 3.2159/2190 from 3.2358/2379 yesterday.

However, the ringgit was lower against the Singapore dollar at 3.1781/1816 from 3.1559/1582 previously. - BERNAMA