The ringgit opens slightly lower against the US dollar

At 09:00, the local currency stood at 4.4570/4595 against the greenback against yesterday’s close at 4.4540/4565. ― Photo by Hari Anggara

Wednesday August 03, 2022 09:58 MYT

KUALA LUMPUR, August 3 ― The ringgit opened slightly lower against the US dollar this morning as investors continue to seek refuge in the safe-haven currency following mounting geopolitical risks.

Currently, geopolitical risks are at the forefront with US House Speaker Nancy Pelosi’s visit to Taiwan, heightening US-China tension.

At 09:00, the local currency stood at 4.4570/4595 against the greenback against yesterday’s close at 4.4540/4565.

Independent economist Dr Mohd Afzanizam Abdul Rashid said investors were seeking shelter from possible calamities due to heightened uncertainties, whether economic or geopolitical following Pelosi’s visit despite officials’ stern warning Chinese which led to various military exercises near the Taiwan Strait.

“We will see how this event unfolds, if it could lead to further tensions between the two nations.

“The US dollar is likely to strengthen further after experiencing some weakness recently,” he said.

Furthermore, Mohd Afzanizam said, the US Dollar Index (DXY) has risen above 106 points at the moment as demand for the greenback has intensified.

“As such, the dollar-ringgit is likely to remain weak at the RM4.45 level,” he said.

Meanwhile, the ringgit was trading higher against a basket of major currencies.

The local currency rose against the Japanese yen to 3.3308/3330 from Tuesday’s close at 3.4031/4053, rose against the pound to 5.4139/4170 from 5.4406/4436 yesterday.

It also improved against the Euro to 4.5274/5300 from 4.5587/5612 previously and rose against the Singapore Dollar to 3.2211/2233 from 3.2278/2301 yesterday. ― Bernama

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