KUALA LUMPUR, Aug 24 — The ringgit opened easier against the US dollar today, as the greenback gained some strength from the US bond market and improving US business activity and home sales readings for July 2020.

At 9.03am, the local currency was traded at 4.1800/1850 from 4.1780/1800 at last Friday’s close.

In a note today, Kenanga Research said nevertheless, the local note may find some support if there is any improvement in the crude oil markets and Malaysia’s trade data.

Meanwhile, AxiCorp chief global market strategist Stephen Innes said the US dollar has been trading better, specifically to the ringgit, amid disappointment that the US Federal Reserve’s July policy meeting minutes lacked fresh insights into the central bank’s bond-buying plans.  

"However, the local unit is trading a bit weaker due to equity outflow last Friday, and I think this has more to do with profit-taking on momentum stocks as the US dollar has gotten a bit stronger,” he told Bernama.

According to MIDF Research’s fund flow report released today, foreign fund outflow amounted to RM193.1 million last Friday, registering the largest net outflow of the week.

Technically, Kenanga Research said the exponential moving average (EMA) technical indicator suggested that the ringgit would switch to a bearish trend, charting a marginal depreciation of 0.04 per cent against the greenback to 4.180 this week.

"The short-term technical analysis shows an immediate resistance level at 4.188, a break of which will test the 4.198 level.

"Alternatively, a breach below 4.164 is needed to mark a resumption of a bearish US dollar trend,” it added.

At the opening bell, the ringgit was traded firmer against a basket of major currencies.

It strengthened against the Singapore dollar to 3.0460/0501 from 3.0528/0553 last Friday and was higher against the yen at 3.9505/9563 from 3.9561/9583 previously.

Vs-a-vis the euro, the ringgit appreciated to 4.9299/9362 from 4.9355/9383 and rose against the pound to 5.4691/4761 from 5.5012/5046. — Bernama