KUALA LUMPUR – The ringgit opened higher versus the US dollar this morning on renewed demand for the local currency in tandem with the better performance on equity market, a dealer said.
At 9.01 am, the local unit was quoted at 3.9800/9850 against Wednesday’s close of 3.9870/9900.
A dealer said the stock and currency market rebounded as the Italian risks faded slightly.
The recovery was partly driven by news that Italy’s two anti-establishment parties were renewing efforts to form a government, rather than forcing the country to the polls for the second time this year.
He said that safe-haven trend receded on Wednesday, with the euro bouncing nearly one per cent versus the dollar and recouping all its Tuesday losses.
Meanwhile, OANDA Head of Trading in Asia-Pacific Stephen Innes said the ringgit was trading very quietly but with a very tight relationship to global risk.
“External drivers would continue to be the near-term influence. The US non-farm payroll data to be released this Friday would likely dictate the short-term US dollar direction,” he added.
Meanwhile, the local unit was mixed against a basket of currencies.
The local unit depreciated against the British pound to 5.2906/2989 from 5.2904/2963 and was lower against the euro at 4.6403/6469 from 4.6301/6344 on Wednesday.
It improved against the Singapore dollar to 2.9713/9754 versus 2.9714/9741 and gained versus the yen to 3.6608/6664 from 3.6645/6680 yesterday. – BERNAMA