Ringgit opens slightly firmer against US dollar

KUALA LUMPUR: The ringgit opened slightly firmer against the US dollar today, as risk-on sentiment kicked in after US President Donald Trump said negotiations for a trade deal with China were in its “final throes”.

At 9 am, the ringgit was quoted at 4.1700/1750 against the greenback from Thursday’s close of 4.1720/1750.

A dealer said Trump’s remarks had raised hope in the market that the two economic giants could wrap up their trade deal soon, despite the US President’s signing of Hong Kong Human Rights and Democracy Act into law recently.

Meanwhile, AxiTrader chief Asia market strategist Stephen Innes said the trade talk optimism is papering the economic cracks in China as so far, and risk asset continued to turn a blind eye to the deteriorating economic landscape.

“However, the market still feels a bit squeezy, but there’s a risk-on tone that is trying to climb out of its 24-hour Hong Kong bill-imposed cocoon,“ he said in a note today.

Innes reiterated that the ringgit performance would continue to track the yuan’s movement as local traders continue to wear trade talk emotions on their sleeves.

“In the meantime, they will key on equity and bond flows while cautiously biding time ahead of the next trade headline, “ he added.

At the opening bell, the local unit traded higher against other major currencies.

It rose against the Singapore dollar to 3.0525/0573 from 3.0537/0579 on Thursday, strengthened against the euro to 4.5912/5971 from 4.5942/5992 yesterday and went up against the pound to 5.3831/3899 from 5.3965/4020.

Vis-a-vis the yen, the local unit also appreciated to 3.8075/8131 from 3.8125/8156 at Thursday’s close. -Bernama

Source: TheSunDaily