KUALA LUMPUR – The ringgit opened marginally higher against the US dollar this morning in tandem with the positive risk sentiment ahead of the upcoming Budget 2023 announcement this Friday.
At 9am, the local currency rose marginally to 4.6355/6400 against the greenback from yesterday’s close of 4.6420/6450.
SPI Asset Management managing partner Stephen Innes said the ringgit should rebound in the early session on broader US dollar weakness, on the back of fiscal concerns.
Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said investors are now waiting for the release of the US ADP Non-Farm Employment data, which will provide more insight into the health of the US economy.
However, he said the US dollar’s performance may be influenced by the European Union’s Producer Price Index data, which has hit a fresh record high of 43.3% year-on-year in August 2022, compared to 38% in July 2022.
“The inflation scenario in Europe is exacerbated by the energy crisis caused by Russia’s conflict with Ukraine and has an effect on the entire market, with many investors preferring to sell risky assets and buy safe-haven assets,” he said.
Meanwhile, the ringgit was traded lower against a basket of major currencies.
The local note slipped against the British pound to 5.3039/3091 from 5.2752/2786 at yesterday’s close and eased slightly versus the Singapore dollar to 3.2555/2591 from 3.2462/2487 yesterday.
It had also depreciated against the Japanese yen at 3.2222/2256 from yesterday’s closing of 3.2067/2090 and slid vis-à-vis the euro to 4.6248/6293 from 4.5863/5893 previously. – Bernama, October 5, 2022
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