Ringgit opens higher against US dollar

A man is seen counting dollar bills. (Reuters pic)

KUALA LUMPUR: The ringgit rose against the US dollar on Wednesday morning as fears of a trade war between the US and Mexico simmered down, a dealer said.

At 9 am, the ringgit was at 4.1600/1650 against the greenback from 4.1610/1650 at Tuesday’s close.

OANDA Senior market analyst, Alfonso Esparza said the dollar traded higher after Washington brokered a deal on migration with its North American neighbour which avoided painful tariffs on Mexican goods.

With the de-escalation of tension with Mexico, the US can now focus on the US-China trade dispute.

“The negotiations between the two super-powers don’t have a set date, and with the G20 in Japan fast approaching, the chance there is a positive announcement is uncertain,” he said.

At the opening, the ringgit, however, traded lower against a basket of major currencies.

It depreciated against the Singapore dollar to 3.0503/0551 from 3.0484/0522 at last Tuesday’s close, lower versus the yen to 3.8334/8391 from 3.8283/8324 and weakened against the euro to 4.7133/7194 from 4.7086/7148.

Vis-a-vis the pound, the local unit was lower at 5.2932/3000 to 5.2874/2941 at last Tuesday’s close.