Ringgit opens higher against US dollar

KUALA LUMPUR: The ringgit recovered to open higher against the US dollar on renewed buying interest.

At 9.01am, the local note stood at 4.4270/4370 against the greenback compared with Monday’s closing of 4.4400/4480.

AxiCorp global chief market strategist Stephen Innes said investors were chapfallen by the massive US Federal Reserve action that has not led to a market rebound, with equities struggling to bounce and the US dollar worse for wear.

“We may see short-term respite due to the Fed’s stimulus that helps sentiment globally. In addition, oil prices are a bit higher on possible Opec and US support.

“I think we trade defensively but still under immense pressure because of local economic conditions,” he told Bernama.

On Monday, the Fed said it could purchase an unlimited amount of treasuries and mortgage-backed securities.

The ringgit traded mostly higher against other major currencies.

The domestic unit rose against the Singapore dollar to 3.0397/0482 from 3.0474/0543 on Monday, strengthened against the yen to 4.0078/0179 from 4.0290/0374 and advanced against the British pound to 5.1340/1474 from 5.1619/1730.

It declined against the euro to 4.7816/7942 from 4.7539/7634.