Ringgit opens higher against greenback

12 Jul 2023 10:11am
For illustration purpose
For illustration purpose
KUALA LUMPUR - The ringgit appreciated against the US dollar at the opening today, supported by rising oil prices and strong demand from China for Malaysia’s main commodities, particularly oil, said an analyst.

At 9 am, the local note firmed at 4.6485/6535 against the greenback compared with 4.6570/6610 at Tuesday’s close.

SPI Asset Management managing director Stephen Innes said the prospect of credit extensions to property developers should see China’s attempt to monetise projects by accelerating construction to drive sales boost commodity demand.

China’s authorities have also announced measures to support the real estate sector by allowing a one-year loan extension for ailing property developers.

"This is positive for ringgit trading today. Nevertheless, the markets expect a decline in US inflation on Wednesday, but of course, the question is how much it will beat consensus,” he told Bernama.

He explained that a softer US inflation print would weaken the greenback, hence local exporters could be selling the US dollar for ringgit especially as there are signs of the yuan stabilising.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid opined that the local note should be well supported today as anticipation of lower Consumer Price Index (CPI) in the US, which would be released tonight, gathers more steam.

"The US Treasury yield fell a further 3.96 per cent, while the US Dollar Index (DXY) dropped to 101.496 points.

"The immediate support level is located at 4.6257,” he said.
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At the time of writing, the benchmark Brent crude oil price rose 0.14 per cent to US$79.51 per barrel.

Meanwhile, the ringgit traded mostly lower against a basket of major currencies.

It slipped against the Japanese yen to 3.3282/3320 from 3.3162/3193 on Tuesday’s close and weakened against the British pound to 6.0193/6.0258 from 6.0136/0187 but rose vis-a-vis the euro to 5.1226/1282 from 5.1264/1308 previously.

The local note was also traded mixed against other Asean currencies.

The ringgit strengthened versus the Singapore dollar to 3.4716/4756 from Tuesday’s close of 3.4723/4755 and it improved against the Indonesian rupiah to 306.7/307.2 from 307.2/307.7 previously.

However, the local note weakened against the Thai baht to 13.3885/4076 from 13.3780/3956 and was flat against the Philippine peso at 8.42/8.45 from 8.42/8.43 yesterday. - BERNAMA