KUALA LUMPUR, Dec 31 — The ringgit ended the year on a hopeful note, hitting an eight-month high against the US dollar on buying interest backed by prospects of improving economic growth.
Analysts said the local currency was also tracking the firmer Chinese yuan against the greenback in the wake of the “phase one” trade detente.
At 6pm, the ringgit was traded at 4.0890/0920 against the US dollar from 4.1045/10850 on Monday.
AxiTrader chief Asia market strategist Stephen Innes said with the People's Bank of China making lenders adopt a new loan pricing regime, it should improve China’s monetary policy transmission to economic sectors that needed it the most.
“This could be positive for the ringgit given Malaysia's close trading ties with China and improve regional trade flow if the policy measures boost China's real economy,” said Innes.
Meanwhile, the ringgit was traded mostly firmer against a basket of major currencies.
It improved against the Singapore dollar to 3.0383/0415 from 3.0424/0458 on Monday and but eased against the Japanese yen to 3.7645/7683 from 3.7608/765.
The local currency rose against the British pound to 5.3795/3855 from 5.3839/3908 and strengthened against the euro to 4.5850/5888 from 4.5966/6019. — Bernama
