Ringgit rebounds against US dollar at opening

Ringgit rebounds against US dollar at opening
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KUALA LUMPUR (May 20): The ringgit rebounded to open slightly higher against the US dollar on Friday (May 20) on renewed buying interest amid slightly easing demand for the greenback due to softer US Treasury yields, said an analyst.

At 9.02am, the local note stood at 4.3940/3980 versus the greenback from Thursday's close of 4.4030/4060.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the yield on the 10-year Treasury note, which fell four basis points to 2.84%, should offer the beleaguered ringgit some relief on Friday.

“Investors [are] seeking shelter against market volatility,” he told Bernama.

Besides, he said the US Dollar Index (DXY) was also down by 1.05% at 102.724 points, making the ringgit more attractive for market players.

However, in another note, he said the earnings guidance among Wall Street firms suggests more reasons for investors to pile into the US dollar.

“Rising inflation and supply chain disruption are the common issues cited that make profit outlook in the near terms looks challenging,” he added.

The ringgit was, however, traded mostly lower against a basket of major currencies.

It depreciated against the Singapore dollar to 3.1831/1863 from Thursday's close of 3.1752/1778, decreased vis-a-vis the euro to 4.6480/6522 from 4.6223/6254, and slid versus the British pound to 5.4771/4821 from 5.4584/4621.

However, the ringgit appreciated versus the Japanese yen to 3.4385/4419 from 3.4495/4524.