Ringgit opend higher against dollar on possibility of China’s reopening, stocks rally

KUALA LUMPUR, Nov 8 — The ringgit opened higher versus the US dollar today supported by positive sentiment on the possibility of reopening of China’s borders and rally of equities, said an analyst.

Ringgit Higher Against Dollar, Stocks rally
Ringgit Higher Against Dollar, Stocks rally

At 9am, the local note rose to 4.7350/7390 from Monday’s close of 4.7385/7420.

SPI Asset Management managing director Stephen Innes said the positive sentiment could led the ringgit to push further on the upside given Malaysia’s close trading ties with China.

“Although it (China’s reopening) is more spin than substance, investors could start adding more local risks on their books and broaden their risk-taking.

“However, ahead of the local general election, I suspect external demand for the ringgit could remain muted,” he told Bernama.

On the US front, demand for greenback eased ahead of the US Consumer Price Index (CPI) data and results of the midterm elections.

The US CPI would be the next marker for the US Federal Open Market Committee on how high to take interest rates, Innes said.

Meanwhile, the Malaysian currency was traded lower against a basket of major currencies.

Ringgit against Singapore Dollar

It fell against the Singapore dollar to 3.3807/3840 from 3.3731/3761 at Monday’s close and weakened vis-a-vis the Japanese yen to 3.2319/2348 from 3.2303/2329 previously.

The local currency also eased against the euro to 4.7468/7508 from 4.7323/7358 yesterday and slipped versus the British pound to 5.4599/4645 from 5.4227/4267. — Bernama

[Source: MalayMail, Image Source: Business Today]