KUALA LUMPUR: The ringgit ended slightly higher against the US dollar today on mild demand, tracking the equity market’s positive sentiment despite a firmer greenback, analysts said.
SPI Asset Management managing director Stephen Innes said the sentiment has also been temporarily buoyed in Asia markets by speculation that China will allow a higher percentage of foreign investment in local companies, which is good news for local markets.
“I think investors do not want to close the week with too long dollars against the ringgit in case some supportive policy announcements from China are made over the weekend.
“Locally, Malaysia’s headline inflation was broadly unchanged which gives a mixed message to currency markets.
“For the economy, it is good news but it also supports the idea that Bank Negara Malaysia will remain on hold,” he told Bernama.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the ringgit was seen to be well supported at RM4.6875 today while the US Dollar Index (DXY) was higher by 0.21% at 105.586 points.
“The oversold condition of the ringgit may have resulted in buying activities among the traders,” he added.
At 6pm, the local note improved to 4.6865/4.6920 against the greenback from yesterday’s close of 4.6890/4.6940.
The ringgit was traded higher against a basket of major currencies.
It rose against the Japanese yen to 3.1593/3.1632 from 3.1650/3.1686 at yesterday’s close, advanced against the euro at 4.9860/4.9918 from 4.9947/5.000, and was better versus the British pound at 5.7372/5.7439 from 5.7632/5.7694 yesterday.
At the same time, the local note was traded mixed against other Asean currencies.
It weakened vis-a-vis the Singapore dollar to 3.4313/3.4359 from 3.4271/3.4310 yesterday and fell versus the Thai baht to 13.0119/13.0322 from 12.9695/12.9880 previously.
It slightly appreciated against the Indonesian rupiah to 304.7/305.3 from 304.9/305.4 at yesterday’s close and was flat against the Philippine peso at 8.25/8.26. - FMT
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