Amid the demand for Asian currencies, the local note closed the day at 4.0130/0180 from Tuesday
KUALA LUMPUR: The ringgit remained on an uptrend against the US dollar at the opening today and on sustained buying interest for the local unit, said a dealer.
At 9.06 am, the ringgit stood at 3.9580/9610 against the greenback from 3.9700/9730 at last Friday's close.
Oanda Corp Head of Trading for Asia Pacific, Stephen Innes, said the stars continue to align for the ringgit with higher oil prices, an emerging weaker US dollar trend, surging US equities, a stable domestic economic landscape and an interest rate hike by Bank Negara Malaysia in the offing.
“But from a technical perspective, the breach of the critical 3.98 barrier brings the 3.95 level well within reach in the short-term. However, given that the market has been milking the same signals for the past three months, the real question is where the next major catalyst will emerge?” he said in a note today.
Innes noted that Malaysia would be the clear winner from the Belt and Road Initiative (BRI) as China will continue to export excess capacity through foreign direct investments, while expanding construction contracts to improve critical forks in BRI transport networks.
“This resulting domestic economic growth from BRI will add significant points to the recent ringgit's outperformance,” he added.
Meanwhile, the ringgit traded lower against a basket of major currencies.
It eased against the Singapore dollar at 2.9917/9951 from Friday's 2.9895/9924 and declined against the yen to 3.5735/5772 from 3.5727/5761.
The ringgit was broadly lower against the British pound to 5.4407/4460 from 5.4040/4084 and fell against the euro to 4.8299/8348 from 4.8128/8181. - Bernama
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