KUALA LUMPUR, Feb 19 ― The ringgit opened lower versus the US dollar today, as demand for the greenback remained higher against a basket of Asean currencies amid lingering Covid-19 worries.
At 9.04am, the local unit decreased slightly to 4.1525/1565 against the greenback, compared with yesterday's close of 4.1520/1560.
AxiCorp's chief market strategist Stephen Innes said the local market appears to have stabilised, although the Covid-19 outbreak may weigh on growth in the near term with economic uncertainty remains high despite a probable call to action from Bank Negara Malaysia.
“It is hard to say how the Covid-19 global health emergency will ultimately unfold. The situation remains fluid, which continues to complicate matters as its this specific level of uncertainty that has investors shying away for Malaysian assets and weighing on the ringgit,” he said.
Innes said Korea's 20-day exports data due to be released on Friday will be the first barometer of how the month is panning out.
“It will be an essential test of investors' resolve. Still, with a good chunk of the post-Covid-19 manufacturing rebound trades flushed, the Asean basket sell-off on a weaker-than-expected print might not be so fierce,” he noted.
The ringgit was traded mixed against other major currencies.
It fell against the Singapore dollar to 2.9827/9858 from 2.9810/9850 yesterday and vis-a-vis the pound to 5.3983/4039 from 5.3951/4020.
The local unit, however, appreciated against the yen to 3.7788/7828 from 3.7838/7878 yesterday and rose against the euro to 4.4839/4886 from 4.4950/5009 previously. ― Bernama
