Ringgit opens flat against US dollar

KUALA LUMPUR: The ringgit opened flat against the dollar Wednesday, as investors stayed on the sidelines, awaiting fresh local catalysts.

At 9am, the local note was traded at 4.1150/1210 against the US dollar from 4.1150/1200 at Tuesday’s close.

Axi chief global market strategist Stephen Innes said after touching above 4.13 at one point yesterday due to higher US bond yields, the ringgit was cushioned by foreign exchange (FX) risk-friendly comments from the People’s Bank of China (PBoC).

PBoC deputy governor Chen Yulu reiterated that China will steadily and prudently push forward capital account convertibility and promote yuan internationalisation.

“This provided the succour to the US yields onslaught that had caught local Asia FX traders leaning the other way, thinking the PBoC was open to a weaker yuan,” Innes said.

On the oil market, benchmark Brent crude, which was trading 0.37% higher at US$67.77 per barrel, also supported the ringgit from dipping.

Meanwhile, the ringgit was traded mixed against other major currencies.

It eased against the Singapore dollar to 3.0597/0644 from 3.0583/0627 on Tuesday and fell against the Japanese yen to 3.7895/7968 from 3.7863/7913.

The ringgit, however, marginally gained versus the British pound to 5.7141/7237 from 5.7178/7260 and appreciated against the euro to 4.8936/9023 from 4.8989/8057.