The ringgit remains horizontal as the market sentiment is cautious

thecekodok


The ringgit opened almost unchanged against the US dollar as careful sentiment for economic prospects prompted investors towards safe assets.


At 9.30am, the ringgit was at 4.4450, which fell 0.23% against the US dollar than it closed 4.4310 on Thursday's closing.


Bank Muamalat Malaysia Bhd chief economy, Dr Mohd Afzanizam Abdul Rashid, said sentiment rejected the dominant risk, with US equity continuing its decline.



He said the benchmark index fell more than 1%, while the price of US Treasury bonds increased, marking the transition to safe assets amid uncertainty from the trade war.


Looking further, the US Dollar Index (DXY) rose 0.22% to 103.841, driven by uncertainty of global growth prospects this year.


Mohd Afzanizam emphasized that the US manufacturer's price index came lower than 3.2%, compared to a 3.3%consensus estimate.


Therefore, the ringgit can remain weak in the near future as market participants rush to the safe currency of the US dollar. Expectations of monetary relaxation by the Fed and the possibility of increasing US recession can maintain careful sentiment.


Compared to a group of major currencies, the ringgit traded is mostly higher.


It increased from the euro to 4.8094/8235 from 4.8205/8276 on Thursday's cover and added value against the British pound to 5.7399/7568 from 5.7426/7510. However, it declined against the Japanese yen to 2.9949/3.0041 from 2.9909/9953.


The ringgit is mixed compared to the ASEAN currency.


It strengthened against the Singapore dollar to 3.3169/3271 from 3.3198/3250 but was weak against the Thai Baht to 13.1495/1944 from 13.1199/1443.


The local currency also dropped lower against Indonesia's rupiah to 269.7/270.6 from 269.7/270.2 and remained slightly changed compared to the Philippine peso at 7.72/7.75 from 7.72/7.74

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