Ringgit opens higher vs US dollar backed by solid economic data

KUALA LUMPUR: The ringgit opened firmer versus the US dollar on improved demand for the local note backed by solid economic data that show a good recovery from the Covid-19 crisis, including a falling unemployment rate in recent months, said ActivTrades.

At 9 am, the local note rose 20 basis points to 4.3700/3760 against the greenback from Monday's close of 4.3720/3765.

ActivTrades trader Dyogenes Rodrigues Diniz said although the inflation number in Malaysia had been high at 4.0 per cent in November 2022, it was still lower than inflation in the United States (US), which last read 7.1 per cent for the same month.

"All these numbers point to a favourable economic situation in Malaysia, which should encourage the entry of foreign capital into the country, causing the US dollar-ringgit to fall over the next few months.

"From a technical point of view, if the US dollar-ringgit breaks below the 4.3650 level, it may drop as low as 4.2400 before finding some more important support," Diniz told Bernama.

Meanwhile, the ringgit traded lower against a basket of major currencies.

It fell against the Singapore dollar to 3.2835/2885 from 3.2793/2832 at Monday's close and weakened vis-a-vis the Japanese yen to 3.3184/3235 from 3.3009/3045 previously.

The local currency depreciated versus the British pound to 5.3196/3269 from 5.3124/3179 yesterday and eased against the euro to 4.6877/6941 from 4.6636/6684.

-- BERNAMA