KUALA LUMPUR: The ringgit opened slightly higher driven by local investors as international players are staying on the sidelines, waiting for a clearer market direction.
At 9 am, the ringgit was quoted at 4.2750/2850 from 4.2780/2830 of Wednesday's close.
According to an analyst, concerns remained on whether demand for oil will rebound back to pre-pandemic level as the benchmark Brent crude stayed above the US$40 per barrel.
"The global demand has now improved slightly but the fear of COVID-19 resurgence is still out there. This is because, if global markets are closed again for the second time; the oil market will crash," he said.
On the local front, despite unemployment data showed an increase in April, the government's initiative under the PRIHATIN and PENJANA stimulus packages will buffer the impact, as unemployed workers will still receive salary assistance.
"Globally, we have seen the unemployment rate spiked due to COVID-19 including in developed nations such as the US and the United Kingdom. Malaysia is not spared from it. However, the government's initiative is expected to mitigate the impact in the long run," he said.
Meanwhile, the ringgit was traded mostly lower against benchmark currencies.
Japanese yen continues its bullish momentum on risk-on sentiment as Yen is considered as a safe haven in the Asian region as the ringgit slipped to 4.0032/0129 from 3.9844/9894 at yesterday's close.
The Bank of Japan will begin its two-day monetary policy meeting today and the central bank is expected to keep its key interest rates unchanged in negative territory.
Against the British pound, the local note dipped to 5.3643/3772 from 5.3616/3692 yesterday while for the Euro it declined to 4.8051/8176 from 4.8033/8107.
Vis-a-vis, it was slightly higher against the Singapore dollar to 3.0663/0745 from 3.0664/0709. -- BERNAMA