Banking crisis brings contrasting fortunes for ringgit and Bursa

Banking crisis brings contrasting fortunes for ringgit and Bursa

Collapse of SVB and Signature Bank dampens demand for the greenback, leads to choppy trading on Wall Street.

KUALA LUMPUR:
The collapse of Silicon Valley Bank (SVB) and Signature Bank in the US has had contrasting impact on the markets in Malaysia.

The banking crisis led to a weakening of the US dollar, helping the ringgit to open firmer against the greenback.

The local currency traded at 4.4850/4.4950 to the US dollar at the start of the day, up from yesterday’s closing rate of 4.4925/4.4965.

However, Bursa Malaysia took the cue from the choppy trading on Wall Street, induced by the financial crisis, to start on a negative note.

The benchmark FTSE Bursa Malaysia (FBM KLCI) opened at 1,416.96 points, losing 4.87 points from yesterday’s close of 1,421.83.

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