Ringgit continues uptrend vs US dollar

11 Oct 2023 10:48am
Image for illustrative purposes only. FILE PIX
Image for illustrative purposes only. FILE PIX

KUALA LUMPUR - The ringgit continued its upward momentum to open higher against the US dollar today as the United States (US) Treasury yield slid following dovish comments from the US Federal Reserve (Fed) officials, said an analyst.

At 9.01 am, the local note rose to 4.7195/7240 against the greenback from Tuesday's close of 4.7255/7310.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the US Treasury yield fell 12 basis points after Atlanta's Fed Bank president Raphael Bostic said the central bank does not need to increase the benchmark interest rates further, and that he foresees no recession ahead.

Consequently, the US dollar index (DXY) fell from 106.22 points to 105.76 points, he said "As such, there’s a chance that the ringgit would appreciate versus the US dollar," he told Bernama.

At the same time, the Israel-Palestine conflict would be closely monitored as market players are anxious about the scale of the conflict, he said.

The US has indicated its unwavering support for the Israeli regime, and its Secretary of State Antony Blinken is set to visit Israel this week.

"The risk-off mode would lift sentiment towards the US dollar, leading to a limited upside potential for the ringgit," he said.

At the opening, the ringgit traded lower versus a basket of major currencies, except against the euro where it rose to 5.0083/0131 from 5.0095/0153 at Tuesday's close.

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It depreciated against the yen to 3.1768/1801 from 3.1740/1779 yesterday and declined vis-a-vis the British pound to 5.8050/8105 from 5.7982/8049 previously.

At the same time, the local note was traded mixed against other Asian currencies.

It had weakened against the Thai baht to 12.9344/9517 from 12.8571/8773 at Tuesday’s close and traded lower against the Singapore dollar at 3.4644/4679 from 3.4619/4662 yesterday.

Meanwhile, it improved vis-a-vis the Indonesian rupiah to 299.7/300.3 from 300.1/300.8 at yesterday’s close and remained unchanged against the Philippines’ peso at 8.31/8.33. - BERNAMA

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