Renewed buying support helps prop up the ringgit in its opening against the US dollar. — File pic
KUALA LUMPUR, Sept 27 — The ringgit rebounded to open higher against the US dollar today, amid renewed buying interest after index provider FTSE Russell retained Malaysian bonds on its watch list yesterday.
At 9.03am, the local note was at 4.1880/1920 against the greenback compared with yesterday's close of 4.1930/1980.
FTSE Russell also retained China's onshore government bonds on a watch list for a possible upgrade, which could allow Chinese debt entry into its World Government Bond Index (WGBI).
Axicorp Asia Pacific market strategist Stephen Innes said China’s currency yuan would be disheartened by FTSE Russel in leaving out Chinese’s bond from the flagship WGBI, which will likely hold back traders from embarking on a semblance of a relief rally.
“I think the ringgit will continue to trade hostage to yuan sentiment,” he said in a note today.
Overall, the ringgit traded higher against other major currencies.
The local currency strengthened against the euro to 4.5704/5764 from 4.5842/5914 and strengthened against the British pound to 5.1617/1682 from 5.1658/1736 yesterday.
It also rose against the Singapore dollar to 3.0297/0337 from 3.0347/0392 and increased against the yen to 3.8850/8894 from 3.8958/9011. — Bernama