KUALA LUMPUR – The ringgit reversed recent losses to open firmer against the US dollar today, as it tracked other Asian currencies’ gains, lifted by a solid manufacturing purchasing managers’ index in the region last month, along with stimulus and Covid-19 vaccine optimism.
At 9am, the local note was 70 basis points firmer at 4.0690/0750 against the greenback from 4.0760/0800 at yesterday’s close.
Axi chief global market strategist Stephen Innes said relatively attractive yields versus the Group of Ten suggest that the investment flow into local bond and equity markets in the region will continue.
However, on the ringgit, he expressed concern that the upside will be capped by the Organisation of the Petroleum Exporting Countries (Opec) quota extension meeting.
“Local traders might turn a cautious eye on the Opec quota extension meeting proceedings, which present a crater on the road instead of a minor speed bump,” he told Bernama today.
Yesterday, it was reported that the scheduled Opec+ meeting would be pushed back to tomorrow to give ministers more time to reach an agreement over production.
Back home, the ringgit was traded mostly lower against other major currencies, except the yen.
It weakened against the Singapore dollar to 3.0429/0486 from 3.0388/0430 at yesterday’s close, retreated against the euro to 4.9092/9169 from 4.8826/8891 and declined against the pound to 5.4602/4687 from 5.4427/4501.
Vis-a-vis the yen, the ringgit, however, strengthened to 3.8994/9055 from 3.9080/9129 at yesterday’s close. – Bernama, December 2, 2020
