Ringgit closes higher as investors shift from safe-haven currencies

 

KUALA LUMPUR: The ringgit extended its positive performance to close higher against the US dollar today in line with the positive momentum in regional currencies as more investors shifted from safe-haven currencies, a dealer said.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the local currency continues to be well supported after the US Federal Open Market Committee (FOMC) decision on May 1.
“The ringgit appreciated against the US dollar to as high as RM4.7328 during the morning session but weakened to RM4.7395 in the afternoon.

“Other major currencies also strengthened against the US dollar; the Japanese yen rose to 153.21, declining below the 155 psychological level,” he told Bernama.

Afzanizam said it appears that the US interest rate cut thesis has gained some traction following the conclusion of the FOMC meeting last Wednesday.

At 6pm, the ringgit was higher at 4.7370/4.7400 versus the greenback from yesterday’s close of 4.7535/4.7555.

At the close, the ringgit was traded mostly lower against a basket of major currencies.

It fell versus the Japanese yen to 3.0947/3.0968 from 3.0614/3.0629 at yesterday’s close but strengthened vis-a-vis the British pound to 5.9487/5.9525 from 5.9490/5.9515 earlier and slipped against the euro to 5.0890/5.0922 from 5.0877/5.0898 previously.

The local note was traded mostly lower against Asean currencies.

It depreciated versus the Thai baht to 12.8723/12.8850 from 12.8615/12.8729 yesterday and went down versus the Singapore dollar to 3.5027/3.5054 from 3.4970/3.4987 previously.

However, the ringgit eased vis-a-vis the Indonesian rupiah to 294.4/294.8 from 293.6/293.9 yesterday and strengthened against the Philippine peso to 8.25/8.27 from 8.26/8.27 previously. - FMT