KUALA LUMPUR, Feb 9 — The ringgit opened lower against the US dollar today on the back of stronger greenback, as well as declining oil prices, dealers said.
At 9am, the ringgit stood at 3.9360/9400 against the greenback from yesterday's close of 3.9245/9275.
A dealer said the US dollar continued its gains, spurred by demand for safety.
It remained bullish against the local currency with positive momentum indicators continued to pick up, and was expected to head towards 3.9554.
He said the local currency was also affected by the fall in oil prices, which slipped to their lowest in seven weeksyesterday, amid concerns of rising global supplies after Iran announced plans to increase production and US crude output hit record highs.
Meanwhile, Oanda Corp Head of Trading for Asia Pacific Stephen Innes said negative regional currency signals abound, while the proximity of the Chinese New Year has traders paring back risk.
“The rapid repricing higher in US bond yields has taken investors by surprise. Moreover, with US yields looking to push higher, we could be in for a bit more pain before the markets find some solid footing,” he said.
He added that higher US yields were supporting the US dollar and weighing on global equity sentiment, hurting overall regional risk appetite.
However, the ringgit traded lower against a basket of major currencies.
It fell against the Singapore dollar to 2.9547/9584 from 2.9496/9523 and declined against the euro to 4.8240/8297 from Thursday's close of 4.7993/7041.
The ringgit also slipped against the British pound to 5.4852/4912 from 5.4394/4439 and depreciated against the yen to 3.6153/6200 from 3.5759/5789. — Bernama