KUALA LUMPUR,. The ringgit opened flat against the US dollar today, dampened by external factors as markets are hedging for a hawkish United States (US) Federal Reserve (Fed) meeting outcome due to sticky inflation.
At 9am, the local note was traded at 4.4090/4160 against the US dollar from 4.4010/4080 at the close last Friday.
SPI Asset Management managing director Stephen Innes said the ringgit was off to a shaky start this week after the higher-than-expected reading on Friday’s US producer price index cast an ominous shadow ahead of this week’s key Consumer Price Index data.
“Higher US yields are negative for the ringgit, while the lack of mass COVID-19 testing in China adds an unwelcome layer of uncertainty over COVID-19 case counts, which will invariably skyrocket and weigh negatively on the initial stages of the reopening.
“So, I think a bit of a reality check is setting in on both the Fed and China front,” he told Bernama.
Meanwhile, the ringgit was traded lower against a basket of major currencies this morning.
The local note had strengthened against the British pound to 5.3882/3968 from 5.3908/3994 at Friday’s close and improved vis-a-vis the euro to 4.6347/6421 from 4.6466/6540 last week.
It also was marginally better versus the Singapore dollar to 3.2524/2581 from 3.2545/2601 last Friday and edged up against the Japanese yen to 3.2225/2278 from 3.2315/2369 previously. — Bernama
