Ringgit Continues To Strengthen Against US Dollar
KUALA LUMPUR: The ringgit continued its upward movement on Friday, closing higher against the United States (US) dollar as uncertainty surrounding the conflict in West Asia weighed on the US currency.
At 6 pm, the local currency rose to 4.0555/0600 against the US dollar from 4.0650/0690 at Thursday’s close.
Stephen Innes, Managing Partner of SPI Asset Management, said investors are adopting a wait-and-see approach, given that the next major market catalysts are expected to depend more on developments in the West Asian conflict rather than domestic factors.
“Investors are monitoring whether the current US-Iran peace narrative proves durable or returns to the headlines,” he said.
Additionally, firmer equity markets have offset some of this week’s losses and have helped boost regional risk appetite, Innes said.
Meanwhile, Dr Mohd Afzanizam Abdul Rashid, Chief Economist of Bank Muamalat Malaysia Bhd, said the ringgit traded fairly steadily on Friday.
“Ongoing negotiations between the US and Iran remain the market’s focus, with West Texas Intermediate (WTI) and Brent crude oil falling 2.47 percent and 2.39 percent to US$85.54 per barrel and US$88.22 per barrel, respectively,” he said.
At the close, the ringgit traded lower against a basket of major world currencies.
The local currency fell against the Japanese yen to 2.5334/5364 from 2.5321/5347 at Thursday’s close, declined against the British pound to 5.4429/4489 from 5.4325/4378 yesterday, and dropped against the euro to 4.6979/7031 from 4.6878/6924 previously.
The ringgit also traded lower against regional currencies.
The local currency declined against the Singapore dollar to 3.1602/1640 from 3.1556/1589 at Thursday’s close and contracted against the Thai baht to 12.4105/4288 from 12.3331/3501 previously.
Meanwhile, the ringgit also fell against the Indonesian rupiah to 227.0/227.4 from 225.9/226.2 at yesterday’s close and depreciated against the Philippine peso to 6.67/6.68 from 6.62/6.63 previously.
Berita Harian