KUALA LUMPUR (April 7): The ringgit maintained its upward momentum against the US dollar at the opening for the second consecutive day as it continued to gain traction from lower US yields.
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If not for lower crude oil prices, currently trading at US$62.66 (RM258.50) per barrel, down by 0.13%, the local note could attain higher buying support.
At 9.02am today, the local unit stood at 4.1220/1270 versus the US dollar from 4.1300/1330 at yesterday’s close. Axi chief global market strategist Stephen Innes said the local note remains mired between competing forces of softer US yields and lower oil prices.
However, he said with the US yields basing, the fuel that drove the ringgit higher could be evaporating, causing the local currency to struggle to break higher ground.
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“It is worrisome for commodity exporters like Malaysia as China is telling banks to reign in lending, which softens China’s credit impulse and is not favourable for the ringgit as Malaysia has strong export ties with China,” he added.
The ringgit was unchanged against the Singapore dollar at 3.0791/0831 from 3.0791/0820, but had risen to 5.7020/7093 from 5.7110/7168 compared to the British pound.
Vis-a-vis the yen, the ringgit slipped to 3.7555/7607 from 3.7376/7406, and was down at 4.8928/9004 from 4.8775/8827 versus the euro.-The Edge Market