Ringgit opens lower on cautious trading

Ringgit opens lower on cautious trading

KUALA LUMPUR,. The ringgit opened marginally lower against the US dollar in the early trading session today, as investors remained cautious despite the retracement in the greenback, dealers said.

At 9.00am, the ringgit was quoted at 4.0420/0450 against the US dollar compared to 4.0410/0450 on Thursday.

A dealer said the greenback is continuing to retrace the bullish trend with the euro becoming buoyant as European data continues to print above expectations, pointing to a potential for a bullish move in the euro.

Investor sentiment was cautious ahead of today’s dateline for the US to impose its first round of tariffs on US$34 billion worth of Chinese imports, he said.

On the local front, Oanda Head of Trading in Asia-Pacific, Stephen Innes said the Malaysian bond market looks like it has finally woken up from its slumber with the 30-year Malaysian government securities (MGS) well-subscribed.

“On the currency front, the bid to cover ratio on this long-dated issue is very encouraging as this extended tenor is usually the domain of real money investors.

“Perhaps a bit of confidence is returning to the local markets which could trigger some much needed offshore flow to return next week. But the task at hand was first to navigate the first US tariff salvo,” he added.

Meanwhile, the local unit traded mostly lower against a basket of currencies, except the British pound.

It fell against the Singapore dollar to 2.9620/9660 from 2.9611/9645 and slipped against the yen to 3.6516/6553 from 3.6504/6547 on Thursday.

The ringgit was lower against the euro at 4.7251/7298 from 4.7223/7286 but rose against the British pound to 5.3415/3463 from 5.3527/3600 yesterday.

— Bernama