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KUALA LUMPUR: The ringgit rallied to open higher against the US dollar today with renewed buying interest.
At 9 a.m., the local currency was at 4.1420 / 1500 against the dollar against 4.1490 / 1540 at the close of Wednesday.
Axi’s chief global market strategist Stephen Innes said the heartbeat of China’s total social finance coupled with a bullish response from the yuan should cause the ringgit to strengthen today.
According to the People’s Bank of China, China’s total outstanding social financing rose 13.5 percent to 280.07 trillion yuan ($ 41.6 trillion) in September from a year earlier and compared to 13.3 percent in August.
Innes said a bullish momentum from higher oil prices after US oil inventories fell more than expected, with the price of Brent crude rising 0.21 percent to $ 43.41 per barrel also provided space for the local note.
“But the demand for US dollars as a safe haven against G10 currencies and growing concerns about COVID-19 will continue to cloud the viewer and could contain the ringgit’s bullish ambitions,” he told Bernama.
Meanwhile, the ringgit was mostly trading lower against other major currencies.
It rose against the Singapore dollar to 3.0498 / 0569 from 3.0564 / 0605 yesterday, but declined against the British pound to 5.3933 / 4041 from 5.3667 / 3749.
The local currency fell against the euro to 4.8669 / 8767 from 4.8659 / 8731 and depreciated against the yen to 3.9350 / 9437 from 3.9342 / 9401. – Bernama
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