Ringgit closes higher against US dollar on positive trade deal talks

Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic
Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic

KUALA LUMPUR, Oct 21 — The ringgit ended on a higher note against the US dollar today, benefiting from the general risk-on move mainly driven by the positive news related to the United States (US)-China trade talks, said an analyst.

At 6pm, the local note was quoted at 4.1800/1840 against the greenback compared with last Friday’s close of 4.1850/1880.

AxiTrader Asia Pacific market strategist Stephen Innes said this came after the recent reports quoting Chinese Vice-Premier Liu He as saying that China would work with the US to address both parties’ core concerns based on equality and mutual respect.

“However, I am a bit surprised that the ringgit did not move stronger, but this may have to do with the lower oil prices.

“If this positive trade talk momentum continues, I think the ringgit should trade firmer against the US dollar soon,” he told Bernama.

As of 6.30pm, oil benchmark Brent Crude fell 1.11 per cent to US$58.76 per barrel on signs of ample global oil supply, coupled with concerns over China’s slower economic growth.

Meanwhile, the ringgit traded mostly lower against a basket of other major currencies.

It fell against the euro to 4.6678/6731 from 4.6571/6621 and weakened against the British pound to 5.4269/4333 from last Friday’s 5.3999/4042.

The local note also dipped against the Singapore dollar to 3.0713/0751 from 3.0644/0670 previously but appreciated vis-a-vis the yen to 3.8493/8541 from 3.8518/8553. — Bernama

Related Articles