Ringgit slightly higher against the US dollar at the open

KUALA LUMPUR (May 18): The ringgit opened slightly higher against the US dollar on Wednesday (May 18) in tandem with the Chinese yuan following positive developments in Shanghai, an analyst said.

At 9:02 am, the local rating stood at 4.3840/3890 against the greenback since Tuesday’s close at 4.3880/3915.

SPI Asset Management managing partner Stephen Innes said the yuan strengthened amid risk sentiment as Shanghai aimed to reopen businesses in the next two weeks, boosting the ringgit and other proxies. Chinese regional exchange rates.

Shanghai has achieved zero Covid status in its neighborhoods and the city is expected to gradually open up, aiming to resume normal life by June 1.

Meanwhile, Chief Economist of Bank Islam Malaysia Bhd, Mohd Afzanizam Abdul Rashid, said the ringgit’s slight appreciation was also supported by the development of China’s tech sector.

“Chinese authorities appear to be more relaxed on the tech sector after more than a year of clamping down on industries.

“It might give some hope [to] industries, alongside further easing of Covid-19 measures, in Shanghai.

“In a nutshell, the market appears to be calm and receptive, paving the way for some opportunities to buy risky assets such as stocks,” he said.

The ringgit, however, traded mostly lower against a basket of major currencies.

It has fallen against the Singapore dollar to 3.1651/1690 since Tuesday’s close at 3.1643/1671 and fell against the euro to 4.6273/6326 from 4.5969/6005.

The ringgit slid against the pound to 5.4743/4805 from 5.4653/4696 on Wednesday and strengthened against the Japanese yen to 3.3911/3952 from 3.3939/3969.

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