Ringgit opens lower against US dollar

KUALA LUMPUR: The ringgit opened lower against the US dollar today as the greenback strengthened on improving US economic data, a dealer said.

As at 9.05am, the ringgit was traded at 4.2800/2860 against the greenback from Tuesday’s close of 4.2750/2800.

AxiCorp chief global market strategist Stephen Innes said the stronger greenback was also supported by investors’ risk aversion banking on firmer US economic data.

“However the US data comfort blanket is being dampened by the increasing Covid-19 cases,” he said in a note today.

On the local front, Bank Negara Malaysia slashed the overnight policy rate (OPR) by another 25 basis points at its Monetary Policy Committee’s (MPC) meeting yesterday.

In its fourth meeting of the year, the MPC reduced the OPR to 1.75%, a record low since the floor was set in 2004.

Meanwhile, the ringgit traded mostly higher against other major benchmark currencies.

The local note strengthened against the Singapore dollar to 3.0659/0706 from 3.0702/0770 yesterday and increased against the yen to 3.9744/9803 from 3.9784/9870.

However, the local note fell against the British pound to 5.3723/3802 from 5.3431/3535 but inched up against the euro to 4.8236/8316 from 4.8362/8457.