Ringgit firmer against US dollar as greenback weakens after SVB collapse

KUALA LUMPUR – The ringgit rose against the US dollar at the opening today as the greenback weakened after banking-related stocks in the United States fell sharply amid concern over the collapse of Silicon Valley Bank (SVB), said an analyst.

At 9am, the local note firmed to 4.4850/4950 versus the greenback from yesterday’s closing of 4.4925/4965.  

Bank Muamalat Malaysia Bhd head of economics, market analysis, and social finance Mohd Afzanizam Abdul Rashid said the market was expecting the Federal Reserve to be more dovish in the Federal Open Market Committee meeting next week following the collapse of SVB.

Meanwhile, Bursa Malaysia opened lower today, tracking Wall Street’s choppy session as the US banking sector came under scrutiny following the collapse of SVB and Signature Bank, said an analyst. 

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI fell 8.50 points to 1,413.33 from yesterday’s close of 1,421.83.

The key index opened 4.87 points easier at 1,416.96.

Market breadth was negative with decliners leading gainers 183 to 121, while 233 counters were unchanged, 1,710 untraded, and 11 others suspended.

Turnover amounted to 193.64 million units worth RM102.60 million. – Bernama, March 14, 2023