ANN/THE STAR – The ringgit was traded easier against the US dollar at yesterday’s opening with demand for the greenback improving on the back of global political and economic uncertainties, an economist said.
At 8am, the ringgit weakened to 4.3850/3995 against the US dollar from last Friday’s close of 4.3800/3850.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market sentiment remained cautious as traders continued to digest its potential impact on the broader economy as the US President-elect will be inaugurated in January next year.
“There is also a sense of frustration over China’s economic stimulus measures announced last week, which fell short of details to boost domestic demand,” he told Bernama.Mohd Afzanizam added that from a technical standpoint, the ringgit is already oversold, indicating that its downside risks are limited.
“However, as market sentiments remain cautious, the demand for the US dollar will continue to remain prevalent with the US Dollar Index (DXY) rising to 105.007,” he said.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
It rebounded vis-a-vis the British pound to 5.6628/6815 from 5.6943/7255 recorded last Friday, and inched up against the euro at 4.6977/7132 from 4.7347/7606.
