Ringgit opens marginally lower against US dollar

Ringgit opens marginally lower against US dollar
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KUALA LUMPUR (July 12): The ringgit retreated from last week's gain to open marginally lower against the US dollar on Tuesday (July 12) on lack of buying interest. 

At 9.30am, the local currency had decreased versus the greenback to 4.4335/4345 from last Friday’s close at 4.4250/4270.

The market was closed on Monday for the replacement holiday of Hari Raya Aidiladha.

As market sentiment is expected to remain fragile amid the weakening global growth outlook due to faster-than-expected interest rate hikes by major central banks, Kenanga Research said pro-cyclical currencies including the ringgit may continue to trade in a volatile manner and depreciate against the US dollar.

“Hence, the local note is likely to hover around the 4.42-4.44 zone against the greenback as the US dollar index is expected to remain elevated around the 107.0 level if the US June Consumer Price Index turns out to be higher than expected,” it said in a research note on Tuesday.

Despite Bank Negara Malaysia’s back-to-back 25-basis-point overnight policy rate hike and strong domestic retail sales reading, the ringgit last week weakened near the 4.43 level for the first time since March 2020 against a strengthening US dollar.

However, the ringgit was traded firmer against a basket of major currencies.

The local currency strengthened against the British pound to 5.2612/2624 from 5.2888/2912 last Friday and was higher vis-a-vis the Singapore dollar at 3.1495/1506 from 3.1528/1547 previously.

The ringgit also rose against the Japanese yen to 3.2302/2312 from 3.2577/2595 last week and increased versus the euro to 4.4397/4407 from 4.4777/4797.