KUALA LUMPUR: The ringgit opened higher against the US dollar in the early trading session today, amid a lull in trade war tensions, a dealer said.
At 9.00 am, the ringgit was quoted at 4.0180/0230 against the US dollar compared with 4.0250/0300 recorded at Monday’s close.
The dealer said there was a drop in aggressive US tariff posturing and the nonfarm payroll, causing traders to shift their interest to other currencies, including the ringgit.
“Asian currencies in addition are trading stronger, aided by a lower renminbi, robust equity performance and improved risk sentiment, which is in complete contrast to last week’s market tumult,” he added.
Back home, the next crucial focus will be the Monetary Policy Committee tomorrow, and the first to be chaired by new Bank Negara Governor, Datuk Nor Shamsiah Mohd Yunus.
“There is no real drive for the central bank to adjust interest rate policy at this stage. However, given all the political uncertainty, there remains a chance that BNM could offer up a dovish pause,” he said.
Against a basket of major currencies, the ringgit traded higher.It rose against the Singapore dollar to 2.9679/9723 from 2.9731/9772 and gained against the yen to 3.6208/6263 from 3.6439/6487 on Monday.
The ringgit was better against the euro at 4.7252/7315 from 4.7366/7437 and improved against the British pound to 5.3279/3349 from 5.3681/3756.