KUALA LUMPUR – The ringgit opened higher against the US dollar today as the greenback eased against the major currencies on the back of optimism on the euro following the first round result of French election.
At 9.13 am(0113gmt) Tuesday, the ringgit stood at 4.3890/3920 against the greenback from 4.3980/3000 registered at 6pm on Friday. (Monday was a holiday in Malaysia)
A dealer said investors” sentiment towards the ringgit also improved as the interest shifted away from the greenback
Meanwhile, the ringgit was traded mixed against most major currencies.
The local note fell against the Singapore dollar to 3.1485/1525 from 3.1466/1485 on Friday and was higher against the yen at 3.9936/9982 from 4.0286/0315 previously .
The ringgit strengthened against the British pound to 5.6083/6139 from 5.6259/6298 on Friday. It, however, slipped against the euro to 4.7651/7702 from 4.7076/7111 previously.
MEANWHILE, according to marketpulse.com:
The IMF said emerging economies could face the double threat of rising protectionism as it could reduce demand for their exports, and that U.S. inflation and faster interest rate hikes could spark capital outflows, making it harder for them to service external debt.
Stephen Innes, a senior trader at OANDA, said in a note investors are likely to feed off a supportive environment for risk assets, which markets expect to continue following the second round of French elections on May 7.
However, he added traders will need to continue to grapple with the possibility of Trump headlines, which could disrupt confidence.
Chee Sing Lim of RHB Research said the ringgit is catching up with Monday’s relief rally following the French poll.
The currency was also helped by a rise in central bank reserves in mid-April.
Meanwhile, a conditional settlement deal between Malaysia’s state fund 1Malaysia Development Bhd and Abu Dhabi state fund IPIC has also boosted sentiment
ACCORDING to Bloomberg, the ringgit traded at 4.3703 versus the U.S. dollar as of 5:35 AM EDT 4/25/2017.