Ringgit bounces to open higher against greenback

KUALA LUMPUR: The ringgit rebounded to open higher today in line with other Asian markets as the greenback fell on worries of a second wave of Covid-19 infections in the US.

At 9am, the ringgit was quoted at 4.2600/2660 compared with yesterday’s close of 4.2730/2780.

An analyst said the dollar took a beating after the country’s Food and Drug Administration (FDA) revoked the emergency use status of hydroxychloroquine, a drug lauded by President Donald Trump as the cure for Covid-19.

“With the medicine (hydroxychloroquine) now out of the picture and rising numbers of Covid-19 cases and the unemployment rate in the US, the greenback has weakened,” he said.

The US Fed had previously painted a sober picture of the economy, declaring that the country’s financial system remains under stress due to the Covid-19 pandemic and that the path back to steady growth and a strong labour market remains uncertain.

Meanwhile, Asian currencies such as the Thai baht, Japanese yen and South Korean won rose against the US dollar today.

Against other baskets of currencies, the ringgit eased against the Singapore dollar to 3.0696/0737 from 3.0620/0662 at yesterday’s close, declined to 5.3867/3935 from 5.3571/3655 versus the British pound previously.

The local note meanwhile was higher at 3.9721/9778 from 3.9816/9870 vis-a-vis the Japanese yen but depreciated against the euro to 4.8337/8398 from 4.8067/8128 yesterday.