Ringgit edges down at opening

A stronger US dollar is reflected in the ringgit's mild decline at the opening of trade. — Picture by Ahmad Zamzahuri
A stronger US dollar is reflected in the ringgit's mild decline at the opening of trade. — Picture by Ahmad Zamzahuri

KUALA LUMPUR, Aug 12 — The ringgit opened mildly lower today due to sturdier US dollar.

At 9.02am, the local note stood at 4.1950/2050 against the greenback compared with 4.1900/1950 at yesterday's close.

Investors focus remained on additional US stimulus package and the upcoming US-China high-level meeting on August 15.

AxiCorp chief global market strategist Stephen Innes said despite some sign of de-escalation of trade talk risk, the ringgit remains susceptible to external factors, including the higher US yields, which could temper foreign bond inflows.

It was reported that the People's Bank of China Governor Yi Gang said that Beijing will continue to implement its part of the phase one deal with the US and fulfil its pledges to open up the country's financial sector.

Locally, investors are waiting for the second-quarter (Q2) gross domestic product (GDP) data to be released on Friday.

Some economists expected Q2 to record up to 13 per cent contraction from a year earlier and the previous quarter following the substantial decline in industrial output in April and May due to the implementation of the movement control order (MCO).

However, this growth data is estimated to be better than in other countries.

Malaysia recorded a 0.7 per cent growth in Q1, a decline from 3.6 per cent growth recorded in Q4 2019.

Overall, the ringgit was traded higher against a basket of major currencies.

It strengthened against the Singapore dollar to 3.0538/0613 from 3.0546/0591 yesterday and versus the yen to 3.9375/9472 from 3.9495/9553.

The local unit also rose against the British pound to 5.4749/4884 from 5.4864/4942 and vis-a-vis the euro to 4.9237/9371 from 4.9383/9459 previously. — Bernama

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