Ringgit opens slightly lower against US dollar on profit taking

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KUALA LUMPUR (Sept 21): The ringgit traded slightly lower at the opening today on profit-taking after it closed at a seven-month high last Friday against the US dollar while tracking the movement of the Chinese renminbi.

As at 9 am, the local note was quoted at 4.1122/1180 compared with Friday's close of 4.1100/1150.

AxiCorp chief global market strategist Stephen Innes said besides, sentiments also seemed to be less worry of the Malaysian Government Securities (MGS) getting excluded from the FTSE World Government Bond Index (WGBI) watch list this month.

“The ringgit should do well as it continues to play catch up with the Chinese renminbi, provided China’s economic recovery remains COVID-19 free.

“Malaysia’s exports to China will likely continue to improve with the mainland retail consumption demand catching up to the Chinese industrial engines firing on all cylinders,” he told Bernama.

However, Innes cautioned that although the ringgit remains a favourable currency to buy in the longer term, it may be more prone to continuous profit-taking if risk wobbles due to the spread of COVID-19 in Europe and concerns over the stock market concentration in the the technology sector.

Against other major currencies, the ringgit was traded mixed.

It eased against the Singapore dollar to 3.0307/0362 from 3.0299/0347 on Friday but strengthened against the British pound to 5.3267/3353 from 5.3340/3421.

The local currency declined against the euro to 4.8764/8848 from 4.8712/8787 but gained slightly versus the yen to 3.9368/9429 from 3.9398/9450.