Ringgit opens slightly lower against US dollar

Ringgit opens slightly lower against US dollar
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KUALA LUMPUR (July 23): The ringgit opened slightly lower against the US dollar today as buying sentiment on the local unit deteriorated after Malaysia reported its second-highest daily Covid-19 cases on record yesterday.

Yesterday, the daily Covid-19 tally rose to 13,034, bringing the nation’s cumulative number of cases to 964,918.

At 9.05am, the local note had eased to 4.2210/2245 versus the greenback from 4.2205/2250 at yesterday's close.

However, ActivTrades trader Dyogenes Rodrigues Diniz said the US dollar had started to fall against the ringgit.

“The decline was expected by the market as it is natural that investors want to take profit after every directional movement,” he told Bernama.

On top of that, he said the ringgit had touched a major resistance around the 4.2400 level against the greenback, which added to the selling pressure. 

From a technical point of view, Diniz said the ringgit could rise to the 4.1700 level versus the US dollar, where it could find some buying pressure and possibly resume the previous uptrend.

At the opening bell, the local note was traded mostly lower against a basket of major currencies except against the euro, where it strengthened to 4.9707/9754 from yesterday’s close at 4.9781/9834.

Meanwhile, the ringgit depreciated against the Japanese yen to 3.8315/8355 from 3.8281/8325,  declined against the Singapore dollar to 3.1103/1133 from 3.1026/1064 and weakened against the British pound to 5.8122/8177 from 5.8028/8090 yesterday.