Ringgit opens firmer versus US dollar on better IPI data

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KUALA LUMPUR (Nov 10): The ringgit opened firmer against the US dollar on Wednesday (Nov 10), galvanised by better Malaysia’s Industrial Production Index (IPI) data for September 2021.

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At 9.15am, the local note opened higher at 4.1490/1520 versus the greenback from 4.1505/1513 at Tuesday’s close.

ActivTrades trader Dyogenes Rodrigues Diniz said the higher-than-expected IPI data gave a boost to buying support for the ringgit.

Malaysia’s IPI increased by 2.5% year-on-year in September 2021, attributed to a 4% growth in the manufacturing index and a 0.4% rise in the electricity index, said the Department of Statistics Malaysia (DOSM) on Tuesday.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said on a month-on-month basis, the IPI increased by 3.7%, driven by the manufacturing and electricity sectors.

Meanwhile, Diniz said from a technical standpoint, if the US dollar-ringgit pair breaches the 4.1600 level, it could rise to 4.1930 within a few days.

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“On the other hand, if it breaks down from 4.1380, it could drop further to 4.0950,” he told Bernama.

At the opening, the ringgit was traded mostly higher against a basket of major currencies.

The local note rose vis-a-vis the British pound to 5.6252/6293 from 5.6326/6332 at Tuesday’s close and improved against the Singapore dollar at 3.0797/0822 from 3.0849/0852.

It also appreciated against the euro to 4.8099/8134 from 4.8112/8133 on Tuesday, but fell against the Japanese yen to 3.6769/6799 from 3.6677/6694 previously.-BERNAMA