The Edge Markets (25/01/2021) - KUALA LUMPUR (Jan 25): The ringgit opened slightly lower against the US dollar today on cautious demand for the local currency, an analyst said.

Axi chief global market strategist Stephen Innes said, however, there seemed to be a more optimistic tone, perhaps due to investors heaving a sigh of relief as Hong Kong lifted a lockdown while assuaging some fears of China stepping back into the Covid-19 lockdown abyss despite increasing mobility restriction measures ahead of the Chinese New Year. 

At 9.15am, the local currency had inched down to 4.0440/0500 against the greenback from 4.0415/0445 at last Friday's close.

“The ringgit opened a touch softer but I would expect it to veer stronger if risk sentiment countries to trade well (sic), and forex (foreign exchange) markets and the local note bullish ambitions will likely be held in check ahead of first Federal Open Market Committee meeting on Wednesday,” he told Bernama.

The ringgit traded mixed against other major currencies.

It fell against the Singapore dollar to 3.0454/0511 from last Friday’s close of 3.0451/0485, and weakened vis-a-vis the pound to 5.5342/5380 from 5.5231/5288.

The local note rose against the euro to 4.9195/9284 from 4.9197/9246 previously and appreciated against the yen to 3.8948/9017 from 3.8984/8021.

Read more at https://www.theedgemarkets.com/article/ringgit-opens-slightly-lower-against-us-dollar-14