KUALA LUMPUR, 7 April 2020 – The ringgit opened higher against the US dollar today. At 9.05am, the ringgit was quoted at 4.3400/3500 against the US dollar, compared with Monday’s close of 4.3600/3700.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said developed markets seem to be in ‘risk-on’ mode as certain countries are seeing a light at the end of the tunnel in their COVID-19 battle.
He said the equities market is in positive territory, with major indices such as the Dow Jones, S&P 500 and Nasdaq closing seven per cent higher compared to Friday.
“The Volatility Index (VIX) has also come down dramatically to 45.24 points currently, from more than 85 points in March, suggesting that investors will take a bit more risk, albeit guardedly.The ringgit is poised to move higher against the US dollar today in the region of RM4.33 to RM4.35.”
The currency rate of ringgit was also traded higher against a basket of major currencies.
It increased vis-a-vis the euro at 4.6813/6945 compared to the 4.7132/7248 on Monday, and rose against the Singapore dollar to 3.0316/0388 from 3.0417/0498.
The local unit improved versus the Japanese yen to 3.9806/9901 from 3.9919/0015, and appreciated against the British pound to 5.3048/3201 from 5.3619/3751 yesterday.
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