KUALA LUMPUR, July 1 — The ringgit extended Friday’s positive trend and opened higher against the US dollar amid positive overtone from G-20 meeting, said Vanguard Markets managing partner Stephen Innes.
At 9.22am, the ringgit stood at 4.1255/1300 against the greenback from Friday’s close of 4.1300/1350.
The local currency opened at 4.1260/1290 this morning.
Innes said ringgit alongside other Asean currencies traded higher in tandem with the trade war relief.
“The US dollar sell-off versus the ringgit could accelerate, especially with the markets tacking towards an aggressive US Federal Reserves (Fed) easing bias,” he said in an email to Bernama.
He noted that Asean currencies remain the huge beneficiary of detente in a trade war and the easing of Fed policy.
“If the Fed follows through with 50 basis point cut in July and, assuming no trade war escalation, which is a big if, (the ringgit) could trade toward 4.08 as risk sentiment will soar, and the chase of yield will be on. The ringgit will benefit from those things,” he added.
The ringgit was higher against a basket of major currencies at the opening.
The local currency strengthened against the Singapore dollar to 3.0497/0524 from 3.0520/0568 on Friday and appreciated against the Japanese yen to 3.8112/8147 from 3.8354/8412.
The ringgit firmed up vis-a-vis the pound to 5.2351/2405 from 5.2352/2419 and rose against the euro to 4.6838/6889 from 4.7012/7085. — Bernama
