Ringgit opens higher against US dollar

KUALA LUMPUR: The ringgit opened higher against the US dollar in early session today due to increased risk appetite among traders on the back of easing geopolitical tensions on several fronts.

As at 9.09am, the ringgit was at 4.0565/0595 against the US dollar from 4.0610/0640 at yesterday’s close.

Public Investment Bank in a note said optimism was high as investors awaited the planned “phase one” signing of a trade deal between the US and China later in the week as preparations for fourth-quarter earnings move into full swing.

Meanwhile, AxiTrader chief Asia market strategist Stephen Innes said the ringgit has been in massive demand from Asia exporter currencies and in particular high yielders.

“Inflows have notably increased, and the ringgit has also reaped the rewards,” he said.

“With low currency volatility, investors are growing yield-seeking appetite where ‘carry is king’ should help the ringgit.”

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

The ringgit rose to 3.6830/6864 from 3.6965/6999 against the Japanese yen and improved to 3.0122/0155 against the Singapore dollar from 3.0146/0177 at the close on Monday.

The local note, however, declined against the British pound to 5.2710/2753 from 5.2675/2730 and weakened against the euro at 4.5177/5215 from 4.5130/5179.