Ringgit opens higher as inflation fears ease

Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic
Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic

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KUALA LUMPUR, Dec 23 — The ringgit reversed losses to open higher today amid a weaker US dollar following improved sentiment as inflation fears eased.

At 9.05am, the local note stood at 4.2060/2100 versus the greenback compared with 4.2110/2140 at Wednesday’s close.

Bank Islam Malaysia chief economist Mohd Afzanizam Abdul Rashid said the US dollar index (DXY) was lower by 0.43 per cent at 96.076 points after a better-than-expected US consumer confidence, which rose to 115.8 in December against consensus estimates of 110.8 points.

Concerns about inflation also fell in December after hitting a 13-year high in November.

Additionally, studies by researchers in Scotland suggested that the Omicron variant is less likely to result in the risks of hospitalisation compared to its predecessors, Delta.

“There appears to be a risk-on mode which can be beneficial to the ringgit. As such, expect the ringgit to experience some support today,” he told Bernama.

However, the ringgit was traded weaker against a basket of other major currencies.

It fell vis-a-vis the Singapore dollar to 3.0892/0926 from 3.0832/0858 yesterday and depreciated against the British pound to 5.6167/6220 from 5.5964/6004.

The ringgit weakened against the euro to 4.7679/7725 from 4.7521/7555 and decreased versus the Japanese yen to 3.6840/6878 from 3.6835/6865 at close Wednesday. — Bernama

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