RINGGIT EXTENDS GAINS TO OPEN HIGHER AGAINST US DOLLAR

By Zarul Effendi Razali

KUALA LUMPUR, Oct 25 (Bernama) -- The ringgit extended positive momentum to trade higher against the US Dollar in the early session today, supported by continued buying demand as more investors shifted to currencies from emerging countries, including the ringgit, an analyst said.

At 8.17 am, the local note was at 4.3405/3515 against the greenback compared with Thursday’s close of 4.3455/3510.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the rise of the US Dollar Index (DXY) seems to have been interrupted amid positive economic data in the United States.

“The DXY fell 0.36 per cent to 104.058 points as traders might lock in some gains as anticipation for a massive US Federal Reserve (Fed) rate cut diminished.

“The US Treasury yields were also lower; the 10-year US Treasury yield dropped 3.0 basis points to 4.21 per cent as the prevailing level became increasingly attractive with the Fed likely to ease its monetary policy albeit at a gradual pace,” he told Bernama today.

In the meantime, he said traders and investors will be preoccupied with the US presidential election as the race between the two candidates is very much a close call. 

In the early session, the ringgit was mostly higher against a basket of major currencies.

It increased vis-a-vis the British pound to 5.6279/6422 from 5.6331/6402 yesterday, inched up against the Japanese yen to 2.8582/8657 from 2.8589/8627 at Thursday's close but slipped against the euro to 4.6969/7088 from 4.6918/6978 previously.

The ringgit traded higher versus ASEAN currencies. It appreciated against the Philippines’ peso to 7.48/7.51 from 7.49/7.51 at the close on Thursday and edged up against the Singapore dollar to 3.2903/2988 from 3.2928/2972 yesterday.

The local currency also strengthened against the Indonesian rupiah to 278.4/279.3 from 278.8/279.3 yesterday and rose against the Thai baht to 12.8779/12.9174 from 12.9031/9259 previously.

-- BERNAMA