KUALA LUMPUR: The ringgit opened lower against the greenback as the US dollar strengthened on news that the US Federal Reserve will shrink its balance sheet through quantitative tightening.
The local unit declined to 4.2060/2100 in early trade from yesterday’s close of 4.2020/2070.
A foreign exchange dealer said the escalating war of words between North Korea and the United States, coupled with questions on whether the Federal Reserve will hike interest rates in December weighed heavily on market sentiment.
The market’s immediate focus will be on the views expressed by US Fed Chair Janet Yellen, who is due to speak later today on inflation, uncertainty and monetary policy.
The local currency was weaker against the Japanese yen at 3.7675/7717 from 3.7491/7549, and lower against the Singapore dollar at 3.1126/1164 from 3.1112/1161.
It was firmer against the euro at 4.9862/9914 from 4.9941/9013 yesterday, and higher against the British pound at 5.6676/6742 from 5.6832/6908 on Monday. — BERNAMA