KUALA LUMPUR, Nov 27 — The ringgit rebounded from its recent losses to open higher against the US dollar today, tracking the firmer Chinese yuan this morning due to US-China trade optimism.
At 9am, the ringgit was quoted at 4.1780/1830 against the greenback from yesterday’s close of 4.1810/1850.
AxiTrader chief Asia market strategist Stephen Innes, however, said investors would keep an eye on Bursa Malaysia’s performance to see if the local bourse could reverse it’s losing streak.
“This is because stock market outflows have continued to weigh on the ringgit sentiment this week,” he said in a note today.
Echoing Innes’s views, AmBank Group chief economist and head of research Dr Anthony Dass said should the outcome of US-China trade deal turned favourable, the local currency which tracked the Chinese yuan closely would strengthen in tandem with the yuan.
“The yuan will likely go back to below 7.00 against the US dollar and should see the ringgit also trending below the 4.17-level against the greenback,” he said in a separate note today.
In the near term, Dass expected the local note could reach 4.13-4.15, should trade talks between the US and China turns positive turn.
“However, if a drag continues on the trade talks, added with some selling pressure on the ringgit during the end of 2019 on the seasonal year-end booking, the ringgit is likely to trade between the 4.17-4.19 levels against the US dollar,” he said.
Describing the US-China trade deal as a game-changer for the ringgit, Dass said the trade deal could lead to a stronger ringgit against the US dollar in 2020.
“We are looking at the ringgit to trade between 4.05 and 4.10 against the US dollar, with the yuan strengthening between the 6.93 and 6.95 levels, supported mainly by the striking of the trade deal between the US and China.
“On the flip side, it could place the ringgit around 4.17-4.21 against the greenback, with yuan at 7.03-7.07 levels against the US dollar,” he added.
At the opening bell, the ringgit traded mostly higher against other major currencies, except against the Singapore dollar.
It advanced against the Japanese yen to 3.8281/8337 from 3.8372/8412 yesterday, improved against the euro to 4.6025/6097 from 4.6050/6098 yesterday and climbed against the pound to 5.3704/3789 from 5.3784/3848.
Vis-a-vis the Singapore dollar, the local unit, however, slid to 3.0608/0654 from 3.0596/0630 at yesterday’s close. — Bernama
