(Updated)

Ringgit opens higher on possible reopening of China, stock rally

Ringgit opens higher on possible reopening of China, stock rally
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KUALA LUMPUR (Nov 8): The ringgit opened higher versus the US dollar on Tuesday (Nov 8), supported by positive sentiment on the possibility of China reopening its borders and a rally in equities, said an analyst. 

At 9am, the local note had risen to 4.7350/7390, from Monday’s close at 4.7385/7420.

SPI Asset Management managing director Stephen Innes said the positive sentiment could led the ringgit to push further on the upside given Malaysia’s close trading ties with China.

"Although it (China’s reopening) is more of a spin than substance, investors could start adding more local risks to their books and broaden their risk-taking. 

"However, ahead of the local general election, I suspect external demand for the ringgit could remain muted," he told Bernama. 

On the US front, demand for the greenback eased ahead of US consumer price index (CPI) data and results of the midterm election there.

The US CPI would be the next marker for the US Federal Open Market Committee on how high to take interest rates, Innes said. 

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

It fell against the Singapore dollar to 3.3807/3840 from 3.3731/3761 at Monday's close, and weakened vis-a-vis the yen to 3.2319/2348 from 3.2303/2329 previously.

The local currency also eased against the euro to 4.7468/7508 from 4.7323/7358 on Monday, and slipped versus the pound to 5.4599/4645 from 5.4227/4267.