KUALA LUMPUR, 24 March 2020 – The ringgit recovered in early trading to open higher against the US dollar on renewed buying interest.
At 9.01am, the local currency rate note stood at 4.4270/4370 against the greenback, compared with Monday’s close of 4.4400/4480.
AxiCorp global chief market strategist Stephen Innes said investors are crestfallen that the US Federal Reserve’s (Fed) massive move has not led to more of a market rebound, with equities struggling to bounce and the US dollar hardy worse for wear.
“We may see short term respite due to the Fed’s stimulus that helps sentiment globally. In addition, oil prices are a bit higher on possible OPEC and US support for oil prices. “I think we trade defensively, but a tad better still, under immense pressure because of local economic conditions.”
On Monday, the Fed said it could purchase an unlimited amount of Treasuries and mortgage-backed securities.
The ringgit traded mostly higher against other major currencies.
The domestic unit rose against the Singapore dollar to 3.0397/0482 from 3.0474/0543 on Monday, strengthened against the yen to 4.0078/0179 from 4.0290/0374, and advanced against the British pound to 5.1340/1474 from 5.1619/1730.
It declined against the euro to 4.7816/7942 from 4.7539/7634.