KUALA LUMPUR, Sept 6 — The ringgit extended its strong performance for the third consecutive day, closing higher against the US dollar today on strong investor demand for the local currency, a dealer said.
At 6pm, the ringgit inched up 4.1780/1830 against the US dollar from yesterday's close of 4.1880/1910.
Axi Trader Asia-Pacific market strategist Stephen Innes said the People's Bank of China (PBoC) continued to fix the renminbi at a market-friendly level of 7.08 to the US dollar, keeping regional risk very stable.
According to PBoC’s website, it will cut the reserve requirement ratio (RRR) by 50 basis points (bps) for all banks, with an additional cut of 100 bps for some qualified banks, effective Sept 16.
With this latest move, China's central bank has cut RRR seven times since early 2018.
Innes said the general trend had been for the US dollar to move lower against ASEAN currencies ahead of the upcoming US-China trade talks in October.
“The risk sentiment surged and held on word of the new trade talks as did investor appeal for the riskier asset, which benefited the ringgit,” he said.
The ringgit also closed higher against other major currencies.
It rose against the Singapore dollar to 3.0221/0261 from 3.0249/0275 registered on Thursday and increased versus the yen to 3.9050/9101 from 3.9302/9341.
The local unit also strengthened against the British pound to 5.1385/1463 from 5.1508/1558 and improved against the euro to 4.6079/6147 from 4.6244/6294.
The market will be closed on Monday next week in conjunction with the birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah. Trading resumes on Tuesday. — AFP
