KUALA LUMPUR – The ringgit opened marginally lower against the US dollar at opening today due to concerns over the Covid-19 pandemic in the region and hawkish United States Federal Reserve tone that validated a bullish US dollar view, a dealer said.
At 9am, the local unit stood at 4.1180/1230, marginally lower against 4.1130/1180 at yesterday’s close.
Axi chief global markets strategist Stephen Innes said the greenback barely made any significant headwinds despite Covid-19 concerns negatively denting oil prices overnight and regional travel restrictions.
“Travel restrictions are likely to remain in force longer than expected due to the new Covid-19 wave hitting Asia’s shores, and the ringgit recovery could walk back amid ‘safe-haven’ demand for the US dollar.”
At the opening bell, the ringgit was traded mixed against other major currencies.
The ringgit rebounded against the British pound to 5.7397/7470 from 5.7508/7594, and advanced against the euro at 4.9556/9633 from 4.9590/9659 yesterday.
It declined against the Singapore dollar to 3.0972/1021 from 3.0964/0011, and reversed gains versus the yen to 3.8098/8151 from 3.7918/7968. – Bernama, April 21, 2021
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