KUALA LUMPUR, Sept 25 ― The ringgit opened flat against the US dollar amid the cloudy local political scene and weaker US dollar, said an analyst.

 As at 9am, the local note remained unchanged at 4.1660/1710 as yesterday’s close.

AxiCorp chief global market strategist Stephen Innes said the ringgit, however, could trade more favourable in the days ahead on anticipation oil better oil prices and coupled with the news that Malaysian bonds will remain in the watch list of the FTSE Russell’s World Government Bond Index (WGBI).

"Left on the watch list was exactly what was expected in the market, doing no plus or minus for the ringgit on that accord.

"Overall, I also think that there is more room for the ringgit to play catch up to the basket of currencies if oil prices can do well,” he told Bernama.

Meanwhile, Maybank Kim Eng, in a research note, said FTSE Russell decided to keep Malaysia on its negative watch.

While FTSE Russell acknowledged Bank Negara Malaysia’s (BNM) initiatives to improve market accessibility for foreign investors, more time is needed to assess the efficacies of the measures to maintain the Market Accessibility Level of Malaysia at 2 which is a minimum requirement for the WGBI.

Innes also pointed out that the markets will continue to watch China’s and local economic growth in the next few weeks, while they (markets) try to iron out the United States’ election risk.

Against other major currencies, the ringgit was also traded lower.

It eased against the Singapore dollar to 3.0278/0319 from yesterday's close of 3.0252/0299 and declined against the British pound to 5.3125/3193 from 5.3075/3155.

The local currency dropped against the euro to 4.8596/8671 from 4.8488/8563 previously and fell versus the yen to 3.9473/9532 from 3.9522/9584. ― Bernama