Ringgit open marginally lower on subdued demand

A Malaysia Ringgit note is seen in this illustration photo June 1, 2017. — Reuters pic

A Ringgit note is seen in this illustration photo June 1, 2017. — Reuters pic , July 28 — The ringgit opened marginally lower against the today on subdued demand ahead of the United States (US) second quarter gross domestic product results which will be released later today.

At 9am, the local unit stood at 4.2780/2820 against the greenback compared with yesterday’s close of 4.2760/2790.

“However, the prospects of a flatter US rate increase trajectory and oil prices surging to an eight-week highs are underpinning demand for the ringgit, as demand for the underweighted regional high yield carries on.

“Markets could be relatively quiet today ahead of tonight’s key US GDP data, so we are not expecting too much movement in the local basket today,” OANDA Senior Trader Stephen Innes told Bernama.

The benchmark crude was trading around US$51.51 per barrel.

Innes also said strengthening commodity prices and strong , supported by robust corporate earnings, were also providing a solid footing for emerging markets.

Against other currencies, the local note was traded mixed.

It fell against the dollar to 3.1481/1534 from 3.1471/1514 yesterday and depreciated versus the yen to 3.8551/8597 from 3.8377/8418 yesterday.

However, the ringgit improved against the euro to 4.9954/5.0018 from 5.0106/0154 yesterday and rose to 5.5931/5991 from 5.6187/6239 yesterday when compared with the British pound. — Bernama

Source: The Malay Mail Online

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