KUALA LUMPUR – The ringgit took a breather from recent gains to open lower against the US dollar today, weighed by a risk-off sentiment amid heightened global geopolitical tension, an analyst said.
At 8am, the local note eased to 4.1595/1680 versus the greenback compared to yesterday’s close of 4.1530/1610.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar Index (DXY) rose 0.42% to 101.194 points as traders and investors were seeking shelter in light of the heightened uncertainties.
“As such, we shall expect the ringgit to weaken as demand for the safe haven currency and the US dollar is expected to be higher.
“The prevailing support and resistance level is located at RM4.0728 and RM4.2128, respectively,” he told Bernama, adding that given the weak sentiment, the US dollar against the ringgit might move towards its immediate resistance level in the near term.
The ringgit traded mostly higher against a basket of major currencies.
It weakened against the Japanese yen to 2.8932/8993 from 2.8892/8950 at yesterday’s close.
However, the local note appreciated vis-a-vis the euro to 4.6025/6119 from 4.6078/6166 and gained against the British pound to 5.5217/5330 from 5.5335/5441 yesterday.
Meanwhile, the local currency fell against Asean currencies.
It was slightly lower against the Singapore dollar to 3.2284/2353 from 3.2269/2334 at yesterday’s close and fell to 12.7749/8104 from 12.7412/7716 against the Thai baht.
The ringgit declined versus the Indonesian rupiah to 273.5/274.2 from 273.1/273.7 yesterday and went down against the Philippine peso to 7.40/7.42 from 7.39/7.41. – October 2, 2024