Ringgit climbs to 5-year new high on weaker greenback in early trade

The local note surged to 4.0490/4.0710 and could maintain its positive momentum, supported by the latest US economic data, says analyst.

KUALA LUMPUR:

 The ringgit climbed to another five-year new high against the US dollar in early Wednesday trade, supported by a weaker greenback as the US dollar index (DXY) weakened.

At 8 am, the local currency surged to 4.0490/4.0710 against the greenback from 4.0615/4.0665 at yesterday’s close. The ringgit hit 4.0490/4.0530 on March 3, 2021.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the DXY fell 0.39% to 97.903 points after the Conference Board reported that US consumer confidence dropped to 89.1 points in December from 92.9 points in November, below the consensus estimate of 91.7 points.

He said the local note had closed 0.39% higher against the US dollar at 4.06 yesterday.

“As such, the ringgit could maintain its positive momentum, supported by the latest US economic data,” he told Bernama.

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

It appreciated against the Japanese yen to 2.5934/2.6076 from 2.6039/2.6072 at Tuesday’s close, rose against the British pound to 5.4718/5.5015 from 5.4851/5.4918, and strengthened against the euro to 4.7762/4.8022 from 4.7901/4.7960.

The local currency also traded higher against its Asean peers.

It trended higher against the Singapore dollar to 3.1524/3.1701 from 3.1607/3.1648, improved versus the Thai baht to 13.0126/13.0921 from 13.0486/13.0705, gained against the Indonesian rupiah to 241.2/242.6 from 241.9/242.3 and was up against the Philippine peso to 6.88/6.92 from 6.90/6.91 previously. - FMT