The ringgit traded easier against the US dollar at the opening today, as China’s lower-than-expected gross domestic product (GDP) data appeared to be the excuse for the weaker ringgit, said an analyst.
At 9.10 am, the local note was traded at 4.5400/5425 against the greenback compared with 4.5340/5405 at Monday’s close.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the close correlation between the Chinese yuan and the ringgit seemed to be taking shape as weak China data points had a spillover effect on the Malaysian economy.
“Following this, the ringgit-US dollar appears to be flirting around with its immediate resistant level of RM4.5491.
“However, thoughts of a possible shift in the US monetary policy will help provide support to the ringgit,” he told Bernama.
At the opening, the ringgit was traded mostly lower against a basket of major currencies.
It weakened vis-a-vis the euro to 5.1025/1053 from 5.0971/1044 at Monday’s close, slipped marginally against the British pound to 5.9365/9398 from 5.9359/9444, but ticked up versus the Japanese yen to 3.2700/2720 against 3.2815/2864 yesterday.
The local note also traded lower against other Asean currencies.
The ringgit fell against the Thai baht to 13.1457/1583 from 13.0984/1225 Monday, declined versus the Singapore dollar to 3.4350/4371 from 3.4315/4366 previously and dropped slightly vis-a-vis the Philippines peso to 8.34/8.35 from 8.33/8.35 yesterday.
The ringgit also eased against the Indonesian rupiah to 302.3/302.7 from 301.9/302.5 previously.