Ringgit Opens Higher Against US Dollar Amid US-China Trade Tensions

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Oct 23 (Bernama) -- The ringgit opened slightly higher against the US dollar on Thursday, amid trade tensions between the United States (US) and China, an analyst said. 

At 8 am, the local note inched up to 4.2240/2340 against the greenback from 4.2280/2325 at Wednesday's close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) trended lower by 0.04 per cent to 98.897 points, as signs of US-China trade uncertainties resurfaced, with the White House weighing its options to restrict critical software exports.

“At the same time, the US President Donald Trump administration has also announced sanctions on Russia’s biggest oil producers due to a lack of commitment by the Russian government to end the war in Ukraine.

“On that note, ringgit is set to exhibit positive momentum today with dollar-ringgit possibly hovering around 4.21 and 4.22," he told Bernama.

At the opening, the ringgit traded mostly lower against major currencies.

It strengthened against the Japanese yen to 2.7791/7859 from 2.7849/7880 at Wednesday’s close, but weakened against the British pound to 5.6386/6520 from 5.6309/6368 and slid against the euro to 4.9024/9140 from 4.9019/9072 previously.

The local note also traded mostly lower against ASEAN currencies.

It was marginally higher against the Singapore dollar at 3.2540/2619 from Wednesday’s close of 3.2556/2593 and slightly gained against the Indonesian rupiah to 254.6/255.4 from 254.9/255.3 previously.

However, it inched down versus the Thai baht to 12.8647/9050 from 12.8573/8769, and remained unchanged against the Philippine peso at 7.23/7.25 from yesterday’s close.

-- BERNAMA