Ringgit closes slightly higher despite a stronger greenback

 

KUALA LUMPUR: The ringgit ended slightly higher against the US dollar today, although the greenback had strengthened as investors focused on the release of the US Federal Open Market Committee’s (FOMC) meeting minutes, an economist said.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit was well supported against the US dollar at around RM4.7963.

He said that while the ringgit was mostly steady today, foreign exchange markets remain cautious ahead of the FOMC minutes’ release tonight.

“As the US Federal Reserve is likely to keep the rate steady in the near- term, the US dollar is likely to be the highly sought-after currency,” he told Bernama.

Yesterday, the local currency briefly slipped past 4.80 against the greenback, its weakest level since reaching an all-time low of 4.8850 in 1998, resulting in Bank Negara Malaysia’s response by issuing its remarks on the prevailing market condition.

At 6pm, the ringgit rose to 4.7920/4.7965 versus the US dollar compared with yesterday’s close of 4.7975/4.8000.

At today’s close, the ringgit also traded higher against a basket of major currencies.

The local currency appreciated vis-a-vis the Japanese yen to 3.1925/3.1957 from 3.1926/3.1945 at yesterday’s close, increased against the British pound to 6.0432/6.0489 from 6.0468/6.0499 yesterday, and rose versus the euro to 5.1754/5.1802 from 5.1799/5.1826 previously.

The ringgit traded mixed against other Asean currencies.

It slid versus the Thai baht to 13.3631/13.3816 compared with 13.3016/13.3148 at yesterday’s close and declined against the Indonesian rupiah to 306.4/306.9 from 306.3/306.6.

The local currency, however, rose vis-a-vis the Singapore dollar to 3.5652/3.5688 from 3.5672/3.5693 and was almost flat against the Philippine peso at 8.56/8.58 from 8.56/8.57 yesterday. - FMT