KUALA LUMPUR, June 27 -- The ringgit continued its positive movement to open marginally higher against the US dollar today on the back of a slight retracement of the greenback against major currencies.
However, the US dollar continues to appeal as a safe-haven currency and would see upside pressure following the uncertainties in Russia over the weekend and concerns over global growth and the expectation of more monetary tightening policy from the US Federal Reserve, dealers said.
At 9 am, the local unit rose to 4.6720/6780 versus the greenback compared to 4.6730/6780 at yesterday's close.
SPI Asset Management managing director Stephen Innes said despite the renminbi trading at a seven-month low (7.2440) against the US dollar and amid ongoing concerns over China's growth, the ringgit has been surprisingly stable.
He said as investors acknowledged that the commodity supplies are still vulnerable to disruption in an uncertain geopolitical landscape in Russia, higher commodity prices are likely to help offset the China issues for the ringgit.
"However, with no signs of supply disruption, higher commodity prices could give way to a hawkish central bank narrative which is collectively on a mission to stamp down global core inflation.
"We maintain the downside bias stance for the ringgit given its close ties to renminbi, wherein we expect more weakness in the coming months," he told Bernama.
In the meantime, the ringgit was traded mostly higher against a basket of major currencies.
It increased versus the British pound to 5.9358/9434 from 5.9487/9551 at Monday's close and rose against the Japanese yen to 3.2560/2602 from 3.2624/2661 but was weaker vis-a-vis the euro at 5.0943/1009 from 5.0917/0971 previously.
The local note was also traded mostly higher against other Asean currencies.
The ringgit went up against the Singapore dollar to 3.4508/4555 versus 3.4536/4575 at Monday's close and advanced against the Thai baht to 13.2531/2754 from 13.2733/2954 yesterday.
It gained versus the Indonesian rupiah to 310.9/311.5 from 311.0/311.5 but was unchanged against the Philippine peso at 8.39/8.40.
TAGS: Ringgit, US dollar, Opening, Stephen Innes, Russia's aborted mutiny