KUALA LUMPUR (Nov 12): The ringgit opened slightly higher against the US dollar on Friday (Nov 12) on better buying support ahead of Malaysia’s third quarter of 2021 (3Q21) gross domestic product results to be released later in the day.
At 9.01am, the local note had risen to 4.1660/1695 versus the greenback from 4.1690/1720 at Thursday’s close.
Speaking to Bernama, an analyst said he believes that Malaysia’s economic recovery is still on track as the country is set to reopen its borders to international visitors by Jan 1, 2022 at the latest.
On the external front, the ringgit could remain under pressure due to the risk of rising inflation in the US.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the increase in the US inflation rate to 6.2% in October could result in the US Federal Reserve changing its tack to anchor inflation expectations as indicators from labour markets showed that US citizens are likely to increase their spending.
“Such dynamics would boost the US dollar's value and this has been reflected in a sharp increase in the US dollar index,” he said.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
It increased to 3.6467/65014 against the Japanese yen from 3.6545/6574 at Thursday’s close, and rose vis-a-vis the British pound to 5.5649/5696 from 5.5835/5876 previously.
The local note also appreciated against the Singapore dollar at 3.0748/0778 from 3.0754/0781 on Thursday, and improved against the euro at 4.7659/7699 from 4.7798/7832.