Business

Ringgit depreciates against greenback on mixed sentiments, weak crude oil

Local note falls to 4.4450/4495 versus US dollar from yesterday’s close of 4.4445/4460

Updated 4 years ago · Published on 12 Aug 2022 10:01AM

Ringgit depreciates against greenback on mixed sentiments, weak crude oil
With the worries on inflation and global growth, as well as tighter financial conditions for the greenback, the local note is not expected to strengthen in the near term. – AFP pic, August 12, 2022

KUALA LUMPUR – The ringgit opened easier against the US dollar today due to mixed sentiments and falling crude oil prices, said an analyst.

At 9am, the local currency fell to 4.4450/4495 versus the greenback from yesterday’s close of 4.4445/4460. 

The analyst said with the worries on inflation and global growth, as well as tighter financial conditions for the greenback, the local note is not expected to strengthen in the near term.

 He said the increase in the US interest rate would put pressure on the ringgit.

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

It rose against the Singapore dollar to 3.2441/2478 from 3.2456/2469 and gained versus the British pound to 5.4162/4217 from 5.4307/4326 previously.

The local currency improved vis-a-vis the Japanese yen to 3.3351/3387 from 3.3516/3529 yesterday and appreciated against the euro at 4.5846/5892 from 4.5934/5949 at yesterday’s closing.

Bursa Malaysia was easier in early trade today as profit-taking activities emerged following a strong closing yesterday, with investors staying on the sidelines ahead of the second quarter gross domestic product announcement due later.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.12 of-a-point to 1,505.44 from 1,505.56 at yesterday’s close.

The benchmark index opened 0.49 points weaker at 1,505.07.

On the broader market, losers led gainers 189 to 105, while 189 counters were unchanged, 1,855 untraded and 24 others suspended.

Turnover stood at 98.91 million units worth RM47.92 million.

Rakuten Trade vice-president of equity research Thong Pak Leng said the FBM KLCI would continue with its uptrend after it decisively broke the 1,500 mark yesterday.

“We anticipate the index to trend within the 1,500-1,515 range today as market undertone improves.

“Meanwhile, we noticed buying is returning on logistic-related companies as many performed rather strongly of late,” he said.

Among heavyweights, Maybank gained two sen to RM8.96, CIMB and Hong Leong Bank added one sen each to RM5.38 and RM20.88 respectively, while Public Bank and IHH Healthcare were flat at RM4.65 and RM6.48 respectively.

However, Petronas Chemicals and Tenaga Nasional shed two sen each to RM8.76 and RM8.56 respectively. 

Of the actives, Theta and Hibiscus bagged two sen each to 98 sen and 86 sen respectively, Bintai and G3 Global were flat at 10 sen and three sen respectively, while Unique Fire slipped one sen to 24.5 sen.

On the index board, the FBM Emas Index trimmed 0.03 of-a-point to 10,683.01, the FBMT 100 Index shed 5.11 points to 10,426.12, the FBM Emas Shariah Index declined 10.24 points to 10,799.87, the FBM 70 lost 23.44 points to 12,774.51 and the FBM ACE decreased 19.76 points to 4,929.34.

Sector-wise, the Financial Services Index rose 35.96 points to 16,811.98, the Plantation Index went up 2.04 points to 7,158.29, while the Energy Index picked up 1.84 points to 660.76, and the Industrial Products and Services Index slid 0.4 points to 183.62. – Bernama, August 12, 2022

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