KUALA LUMPUR, Jan 16 ― The ringgit opened higher against the US dollar today on rising optimism among traders after US President Donald Trump inked the long-awaited “phase one” trade deal with China.
As at 9am, the ringgit was at 4.0630/0670 against the US dollar from 4.0740/0770 at yesterday's close.
Public Investment Bank in a note said the trade pact with China signalled a truce in the dispute over import tariffs which has unsettled markets world-wide and slowed economic growth.
AxiTrader chief Asia market strategist Stephen Innes said the deal was a significant step in ending the frictions that have cast a dark cloud over global economic growth.
“And on the margin should be favourable for risk markets,” he said.
Meanwhile, the ringgit traded higher against a basket of major currencies, except for the British pound.
The ringgit improved to 3.6957/7003 from 3.7073/7111 against the Japanese yen and increased to 3.0179/0224 against the Singapore dollar from Wednesday’s close of 3.0232/0256.
The local note decreased against the British pound to 5.2990/3046 from 5.2921/2968 but strengthened against the euro at 4.5315/5376 from yesterday’s 4.5335/5373. ― Bernama