KUALA LUMPUR: The ringgit extended its gains versus the US dollar at the opening today on subdued buying support for the greenback, despite the United States (US)’ better economic data.
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At 9 am, the local note rose to 4.1505/1535 against the greenback from 4.1530/1555 at Monday’s close.
ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar remained stuck within small lateralisation, but noted the possibility of a major bullish movement for the currency.
He said the main point of interest is the resistance level of 4.1650 on Oct 20, 2021, adding that a break above that level could push the US$-MYR to 4.1930 in a matter of days.
“The strong economic data from the US failed to boost the dollar, and the tone adopted by US Federal Reserve (Fed) chairman Jay Powell has changed a little, but is still conciliatory overall and is reassuring the market about US monetary policy.
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“The market’s main fear is that the changes in terms of monetary policy would be abrupt, but the Fed has done a good job in signalling its future intentions, therefore the US dollar-ringgit remains without a defined direction,” he told Bernama.
At the opening, the ringgit was traded lower against a basket of major currencies.
The local note eased vis-a-vis the British pound to 5.6268/6309 from 5.5991/6024 at Monday’s close and slightly fell against the Singapore dollar at 3.0792/0842 from 3.0765/0786.
It had also depreciated against the euro to 4.8067/8102 from 4.8000/8029 and declined against the Japanese yen to 3.6662/6688 from 3.6606/6628 previously.-BERNAMA