KUALA LUMPUR, Oct 23 - The ringgit opened higher today as the US dollar weakened following a decline in equity prices amid heightened concerns over artificial intelligence (AI)-related investments.
At 8 am, the ringgit strengthened to 4.0785/0855 against the greenback from yesterday’s close of 4.0815/0850.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the concerns stemmed from investors’ doubts over whether further investments in AI-related companies would generate returns within a reasonable timeframe.
He also said the likelihood of an interest rate hike by the US Federal Reserve (Fed) was diminishing as two-year and 10-year US Treasury yields fell by 16 and 17 basis points to 4.64 per cent and 4.95 per cent, respectively.
Mohd Afzanizam added that the US Dollar Index (DXY) eased 0.15 per cent to 101.625 points.
“However, there is growing concern about growth prospects, making the rate hike decision appear to be unrealistic. As such, the ringgit would likely maintain its narrow trading range today as market sentiment remains defensive,” he told Bernama.
The ringgit traded mostly lower against a basket of major currencies at the opening.
It edged up against the euro to 4.5765/5843 from 4.5790/5830, but weakened against the Japanese yen to 2.6054/6100 from yesterday’s close of 2.6035/6057 and slipped against the British pound to 5.4664/4758 from 5.4659/4706.
Meanwhile, the ringgit traded mixed against its ASEAN peers.
It strengthened against the Thai baht to 12.0852/1124 from yesterday’s close of 12.0973/1120 and rose against the Indonesian rupiah to 225.8/226.3 from 225.9/226.3. The ringgit was unchanged against the Philippine peso at 6.42/6.43.
However, it eased against the Singapore dollar to 3.1941/1998 from yesterday’s close of 3.1917/1947.
