RINGGIT OPENS LOWER AGAINST US DOLLAR

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, May 8 (Bernama) -- The ringgit retraced yesterday's gains to open weaker on Wednesday, as the greenback strengthened against other major currencies, analysts said.

They pointed to the demand for the safe-haven US dollar amid ongoing political tensions in the Middle East, despite the release of US jobs data last Friday.

At 9 am, the ringgit depreciated to 4.7400/7455 against the greenback from Tuesday's close of 4.7375/7400.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) is gradually rising to 105.41 points, in the absence of key data points.

“Comments from US Federal Reserve (Fed) officials are still mixed.

“Federal Reserve Bank of Minneapolis President Neel Kashkari indicated that the recent inflation data raise doubts whether the monetary policy is restrictive enough to bring the inflation rate towards its two per cent target,” he told Bernama.

He added that, based on this analysis, the ringgit is expected to remain weak in the near future.

During early trading, the ringgit traded higher against a basket of major currencies.

It rose against the Japanese yen to 3.0600/0638 from Tuesday’s close of 3.0646/0664, strengthened versus the British pound to 5.9226/9295 from 5.9385/9416 earlier, and went up against the euro to 5.0946/1005 from 5.0971/0998 previously.

However, the local note traded mixed against Asean currencies.

Against the Thai baht, the ringgit appreciated to 12.8132/8326 from Tuesday’s 12.8332/8459 and firmed versus the Singapore dollar to 3.4791/5014 from 3.4989/5010, yesterday.

It went down against the Indonesian rupiah to 295.3/295.8 from 295.2/295.5 and fell against the Philippine peso to 8.28/8.29 from 8.27/8.28 previously.

-- BERNAMA