Ringgit closes higher tracking Southeast Asian peers

 

KUALA LUMPUR: The ringgit ended slightly higher against the US dollar today, tracking the higher Southeast Asian peers’ currencies following reports that China is seeking to inject funds to bolster markets and investor sentiments.

SPI Asset Management MD, Stephen Innes said there were media reports that China was poised to inject US$279 billion (RM1.32 trillion) in fiscal support to lift its markets, hence making the Chinese yuan leading in the foreign exchange (FX) market against the greenback.

“There is an anticipation that the ringgit may catch up to the Asean basket if the proposed Chinese stimulus measure materialises,” Innes told Bernama.

Nonetheless, he said the biggest impediment for the ringgit would be the repricing of the US Federal Reserve’s March interest rate cut expectation, which led the local FX markets to remain cautious.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said that the ringgit would stay in a narrow range in the immediate term as Bank Negara Malaysia (BNM) is likely to maintain its monetary policy rate at 3% in its upcoming first Monetary Policy Statement for the year.

“BNM’s latest assessment of the state of the country’s economy will be closely monitored, especially taking into consideration events such as in the Red Sea and the ongoing conflict in the Middle East,” he said.

At 6pm, the ringgit improved to 4.7265/4.7290 against the greenback compared with yesterday’s close of 4.7280/4.7335.

The ringgit was traded mostly lower against a basket of major currencies.

It slipped vis-a-vis the Japanese yen to 3.1994/3.2013 from 3.1918/3.1957 at yesterday’s close, fell against the British pound to 6.0159/6.0191 from 6.0065/6.0134 yesterday, but improved versus the euro to 5.1457/5.1485 from 5.1516/5.1576 at yesterday’s close.

Meanwhile, the local currency was traded mixed against Asean currencies.

It was marginally lower against the Singapore dollar to 3.5283/3.5304 from 3.5252/3.5298 yesterday, rose versus the Thai baht to 13.2395/13.2521 from 13.2493/13.2706 previously, and slightly higher against the Indonesian rupiah to 302.2/302.4 from 302.3/302.8.

The ringgit was almost flat against the Philippine peso at 8.41/8.42 from 8.40/8.42 at yesterday’s close. - FMT