Ringgit Higher Against US Dollar In Early Session

KUALA LUMPUR, Aug 17 (Bernama) -- The ringgit rebounded against the US dollar in the early session Monday as a more gloomy outlook on safe haven currencies shifted investors' interest towards riskier assets including the local currency. At 9.35 am, the local unit was traded at 4.1850/1900 from 4.1910/1950 at Friday's close. In a research note Monday, Kenanga Research said it expects the local note to face another week of sell-off if there is any pro-dollar outcome over the postponed Sino-US trade talks and US stimulus debate. “However, the ringgit’s downside may be partially capped by the underwhelming US retail sales and industrial production data,” it said. The local unit retreated last week after a seven-week rally against the greenback, as Malaysia's economy suffered a record gross domestic product (GDP) contraction of 17.1 per cent in the second quarter of 2020. Despite stable oil prices and COVID-19 vaccine optimism, Kenanga said the ringgit weakened against the firmer US dollar due to a rise in US bond yields and gloomy China data. Meanwhile, the ringgit was traded mixed against a basket of major currencies. The local unit weakened versus the Singapore dollar to 3.0541/0588 from 3.0518/0554 and depreciated vis-a-vis the yen to 3.9288/9339 from 3.9260/9308 last week. The ringgit fell marginally against the British pound to 5.4798/4868 from 5.4785/4854 on Friday and depreciated against the euro to 4.9567/9643 from 4.9416/9472 previously. -- BERNAMA