KUALA LUMPUR – The ringgit weakened further against the US dollar at the opening today, prompted by buying interest for the greenback as it continues to rally following high Covid-19 vaccination rates and concerns over an interest rate increase by the People’s Bank of China, said a dealer.
The local unit fell to 4.0630/0675 against the dollar from yesterday’s close of 4.0570/0600.
Axi chief global market strategist Stephen Innes said as investors’ optimism continued on the US economic growth, there is a likelihood of investments flow exiting the Asian market.
“Ultimately, higher Chinese interest rates by PBoC will dampen credit impulses and slow growth, much to the detriment of local trading partners, like the ringgit.”
However, he said better oil prices will cushion the downward impact for the ringgit, as oil prices are set to outperform most market sentiments in the first quarter of this year.
The local unit was traded mixed against other major currencies.
It fell against the Singapore dollar to 3.0378/0423 from yesterday’s 3.0374/0410, but improved against the yen to 3.8515/8562 from 3.8850/8582 previously.
It was down against the British pound to 5.5614/5680 from 5.5106/5163, but rose vis-a-vis the euro to 4.8618/8688 from 4.8623/8671 previously. – Bernama, February 5, 2021
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