KUALA LUMPUR, May 3 — The ringgit opened easier against the US dollar today on lack of demand for the local currency, but was mostly higher versus other emerging currencies.
At 9am, the local currency stood at 4.0990/1030 against the greenback from Friday’s close of 4.0870/0930.
Stephen Innes, global managing partner at SPI Asset Management, said Asian currencies, including the ringgit, will be influenced by the United States (US) Federal Open Market Committee (FOMC) meeting and China’s weaker Purchasing Managers’ Index (PMI).
On the broader side, Asian currencies are expected to be subdued due to the UK bank holiday.
“But ultimately, the possibility of higher US yields will likely provide the ultimate obstacle for full-on bullish ringgit sentiment ahead of US Non-Farm Payrolls this week,” he told Bernama.
Innes said foreign investors could remain wary about reengaging in the Malaysian bond markets, especially as Bank Negara Malaysia easing cycle is over.
Innes forecast that ringgit to trade between 4.09-4.11 per US dollar this week.
Meanwhile, against the Singapore dollar, the local note slipped to 3.0822/0864 from 3.0785/0839 on Friday.
Against the euro, the local note rose to 4.9323/9388 from 4.9428/9509, expanded against the British pound to 5.6697/6769 from 5.6834/6930, and was higher versus the Japanese yen at 3.7485/7532 against 3.7520/7581 previously. — Bernama
