Ringgit higher against US dollar on strong December IPI

 There is a sense of risk-on mode in Asia following the election results in Thailand and Japan, which led traders to be more constructive on Asian currencies, says analyst.

KUALA LUMPUR:

 The ringgit traded higher against the US dollar on Monday after Malaysia’s December Industrial Production Index (IPI) came in above market expectations, signalling that the domestic economy remains on a firm footing.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said emerging-market currencies are mostly stronger against the US dollar today.

“There is a sense of risk-on mode in Asia following the election results in Thailand and Japan, which led traders to be more constructive on Asian currencies.

“Hence, expect the ringgit to remain well supported in the near term,” he told Bernama.

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

At 6pm, the ringgit increased by 0.33% to 3.9325/3.9375 against the greenback compared with last Friday’s close of 3.9440/3.9525.

It gained versus the Japanese yen to 2.5104/2.5137 from 2.5111/2.5167, appreciated vis-à-vis the British pound to 5.3482/5.3550 from 5.3548/5.3663, but eased against the euro to 4.6647/4.6707 from 4.6508/4.6608 previously.

The local note was also mostly lower against its Asean peers, except the Philippine peso with the ringgit strengthening to 6.72/6.74 from 6.73/6.75 previously.

However, the ringgit edged down vis-à-vis the Singapore dollar to 3.0979/3.1021 from 3.0965/3.1034, fell versus the Indonesian rupiah to 234.0/234.4 from 233.6/234.3 and declined versus the Thai baht to 12.5876/6101 from 12.4609/4933. - FMT