Ringgit ends the week stronger on renewed trade optimism

 There seem to be some encouraging signs in the trade war between the US and China, says analyst.

KUALA LUMPUR:

 The ringgit extended its gains to end the week stronger against the US dollar today amid renewed optimism on global trade, an analyst said.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit’s persistent favourable performance reflected improving investor sentiment, buoyed by signs of potential trade talks between the US and China.

“There seem to be some encouraging signs in the trade war between the US and China, with Chinese officials hinting at possible trade talks with the US,” he told Bernama.

At 6pm, the local currency appreciated to 4.2560/4.2600 versus the greenback from Wednesday’s close of 4.3130/4.3185.

The market was closed yesterday in conjunction with the Labour Day public holiday.

At the close, the ringgit traded higher against a basket of major currencies.

It rose versus the Japanese yen to 2.9437/2.9467 from 3.0142/3.0182 at Wednesday’s close, strengthened vis-a-vis the euro to 4.8297/4.8342 from 4.9009/4.9071 previously, and improved against the British pound to 5.6639/5.6692 from 5.7626/5.7699.

Similarly, the ringgit performed better against its Asean peers.

It was higher versus the Singapore dollar at 3.2862/3.2898 compared to Wednesday’s close of 3.3027/3.3074 and gained vis-a-vis the Thai baht to 12.8697/12.8903 from 12.9066/12.9304.

The local note also improved against the Philippine peso to 7.65/7.67 from 7.72/7.73 on Wednesday and appreciated versus the Indonesian rupiah to 258.8/259.3 from 259.7/260.2. - FMT