Ringgit opens marginally lower against US dollar

Ringgit opens marginally lower against US dollar

At 9.00am, the local currency stood at 4.4570/4595 versus the greenback compared to yesterday’s close of 4.4540/4565. ― Picture by Hari Anggara

Wednesday, 03 Aug 2022 9:58 AM MYT

KUALA LUMPUR, Aug 3 ― The ringgit opened slightly lower against the US dollar this morning as investors continue to seek shelter with the safe-haven currency following rising geopolitical risks.

Currently, the geopolitical risks are at the forefront with US House of Representatives speaker Nancy Pelosi visiting Taiwan, heightening US-Sino tension.

At 9.00am, the local currency stood at 4.4570/4595 versus the greenback compared to yesterday’s close of 4.4540/4565.

Independent economist Dr Mohd Afzanizam Abdul Rashid said investors are seeking shelter against possible calamities due to heightened uncertainties, be it economics or geopolitics as a result of Pelosi’s visit despite stern warning by Chinese officials which has led to various military drills near the Taiwan straits.

“We shall see how this event unfolds, whether it could result in further tension between the two nations.

“The US dollar is likely to gain further strength after experiencing some weaknesses recently,” he said.

Besides, Mohd Afzanizam said, the US Dollar Index (DXY) has surpassed 106 points at the moment as demand for the greenback has escalated.

“As such, dollar-ringgit is expected to remain weak within the RM4.45 level,” he said.

Meanwhile, the ringgit was traded higher against a basket of major currencies.

The local currency gained against the Japanese yen to 3.3308/3330 from Tuesday’s close of 3.4031/4053, advanced versus the British pound to 5.4139/4170 from 5.4406/4436 yesterday.

It also improved against the euro to 4.5274/5300 from 4.5587/5612 previously and rose vis-a-vis the Singapore dollar to 3.2211/2233 from 3.2278/2301 yesterday. ― Bernama