Ringgit opens stronger against greenback

KUALA LUMPUR: The ringgit opened higher against the US dollar today in line with its regional peers as investors were confident the US-China trade discussions will result in a positive outcome, said a dealer.

At 9am, the ringgit stood at 4.0650/0700 against the US dollar from 4.0770/0800 at 5pm yesterday.

The dealer said with US President Donald Trump also open to extending the March 1 deadline on its trade truce with China, it signalled that both countries might resolve their trade war.

“This has sent positive vibes among investors and since the announcement, markets have rallied at an upward momentum, and we hope this continues,” he told Bernama.

Meanwhile, United Overseas Bank (Malaysia) Bhd Senior Economist, Julia Goh said in the near-term, the ringgit is likely to be supported by stable domestic growth drivers, gradual policy reforms, and a sustained current account surplus.

“The local currency still remains undervalued compared to its peers, and the ringgit-denominated assets may offer a safe haven defence amid regional election events in the first half of 2019,” she said.

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

It traded higher against the Singapore dollar at 2.9971/0013 compared with 3.0004/0031 yesterday and rose against the yen to 3.6774/6829 from 3.6876/6913.

Vis-a-vis the euro, it slid to 4.6056/6129 from 4.5960/6010, and declined against the British pound to 5.2410/2495 from 5.2369/2428.