Saturday, July 11, 2020
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Ringgit opens higher in early trade

A customer counts ringgit bills in denominations of 1, 50 and 100 at the service window of a money changer in Kuala Lumpur, 22 July 2005. The Malaysian ringgit was appreciating gradually in cautious trade 22 July after the Malaysian central bank responded to China's yuan revaluation by scrapping the dollar peg in favour of a managed float. AFP PHOTO/TENGKU BAHAR

Malay News: The ringgit opened higher against the US dollar today on lower demand for the greenback amid optimism around the US-China trade negotiations, dealers said.

At 9.05am, the ringgit was higher at 4.1490/1540 against the greenback from Friday’s close of 4.1515/1545.

Axi Trader Asia-Pacific market strategist Stephen Innes said the ringgit, along with other Asian currencies, will keep a close watch on the Chinese yuan, which is heavily exposed to the US dollar following the ongoing trade disputes.

Reports said China is silently diversifying its reserves to reduce its dependence on the world’s largest reserve currency and would manage its risk by diversifying its foreign exchange reserves into other currencies which may include the Japanese yen, the British pound and the euro.

Meanwhile, the ringgit was mostly lower against other major currencies.

The local note marginally decreased against the Singapore dollar to 3.0487/0528 from Friday’s close of 3.0468/0501 but was better against the yen at 3.8127/8184 from 3.8186/8217.

It eased against the British pound to 5.3593/3661 from 5.3430/3473 and declined versus the euro to 4.5871/5931 from 4.5725/5762.

Source: Bank Negara