KUALA LUMPUR (April 1): The ringgit remained defensive to open slightly higher against the US dollar despite lower crude oil prices and the extension of the conditional movement control order (CMCO) in several states, including the Klang Valley, due to a rise in Covid-19 cases.
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At 9am, the local note edged up to 4.1430/1480 against the greenback from yesterday’s close at 4.1450/1480.
The CMCO in Kuala Lumpur, Selangor, Johor, Kelantan and Penang has been extended until April 14, while in Sarawak, the order takes effect until April 12.
Malaysia saw a surge in new Covid-19 infections yesterday, recording 1,482 cases, with Selangor reported the highest number of new cases at 661.
The Ministry of Health’s (MoH) risk assessment found that Covid-19 cases were still increasing significantly.
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Despite the firmer performance of the local note this morning, Axi chief global market strategist Stephen Innes noted that the reopening of sectors had taken another hit following the CMCO extension.
“Hence, the near-term purview isn’t great at the moment,” he told Bernama.
Moving forward, Innes expects trading to be quiet for the next 24 to 48 hours ahead of the release of the US non-farm payroll data for March 2021 as stronger data could shoot US yields higher and strengthen the US dollar versus all of the dollar/Asian currencies.
Meanwhile, against other major currencies, the ringgit was traded mostly higher at the opening bell except against the British pound, falling to 5.7124/7197 from 5.7118/7172 at yesterday’s close.
The ringgit improved vis-a-vis the yen to 3.7388/7444 from 3.7488/7518 yesterday, rose against the euro to 4.8593/8668 from 4.8617/8656, and edged up against the Singapore dollar to 3.0808/0863 from 3.0811/0845.-The Edge Market