KUALA LUMPUR, Jan 31 — The ringgit closed at an almost three-week high against the US dollar today boosted by improved risk appetite for emerging currencies after US Federal Reserve’s dovish stance that its interest rate hiking cycle could now be over.
At 6pm, the ringgit was quoted at 4.0930/0980 against the greenback from 4.1050/1100 on Wednesday.
Phillip Capital Management Malaysia senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said the ringgit strengthened in line with regional currencies, with the Chinese renminbi being the biggest gainer.
He said regional investors cheered the Federal Open Market Committee’s overnight decision to hold key interest rates steady, after raising them four times last year.
“This is a dramatic reversal from its recent policymaking. Market players expected a hike, instead they were pleasantly surprised,” he told Bernama.
Meanwhile, the ringgit was traded mostly lower against other major currencies.
It fell versus the Singapore dollar to 3.0409/0450 from 3.0385/0433 on Wednesday, declined against the Japanese yen to 3.7699/7749 from 3.7530/7586, and weakened against the euro to 4.7000/0070 from 4.6920/6998.
However, the local currency rose vis-a-vis the British pound to 5.3688/3758 from yesterday’s close of 5.3804/3886 as market sentiment was weighed by the Brexit development. — Bernama
