Ringgit Opens Higher Against US Dollar On Upbeat China Data
KUALA LUMPUR, July 15 (Bernama) -- The ringgit opened higher against the US dollar on Tuesday, in line with strengthening Chinese yuan supported by upbeat China's June economic data release, said an analyst.
At 8 am, the ringgit strengthened to 4.2445/2670 against the greenback, from Monday's close of 4.2505/2560.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the data from China, including exports, money supply and new loans, reflects the positive impact of recent economic stimulus measures.
'At the current juncture, the ringgit and Chinese yuan have positively correlated in the region of 80 per cent, with the yuan remaining stable against the US dollar,' he told Bernama.
Mohd Afzanizam said the ringgit's gains came despite the US dollar index (DXY) climbing to 98.106 points, as markets reacted to ongoing United States (US) tariff uncertainties and President Donald Trump's signals of willingness to negotiate, including with the European Union.
'Risky assets such as equities closed higher while the US Treasury yields were rising, reflecting concern over inflation,' he said.
Yesterday, Mohd Afzanizam said the ringgit closed 0.08 per cent lower against the US dollar to 4.2533.
'As such, expect ringgit to trade between 4.24 and 4.25 today,' he added.
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