KUALA LUMPUR, May 21 — The ringgit ended on the firmer note today, bucking the regional market trend as the US market faces disequilibrium due to the growing friction between the United States and China.
As at 6pm today, the local note was quoted at 4.3400/3480 compared with yesterday’s close of 4.3505/3555.
An analyst said the dollar, together with the US equity markets, had shown a steep decline as the recent development had cast dark clouds on the recent rally in risk assets.
“This could put a risk to emerging markets as well, as the phase one trade deal between the two economic powerhouse will be halted.
“Not only that, this also casts doubt that the second phase of the trade deal which is expected to take place after the US Presidential Election. Would it even take place if Donald Trump stays as president?” she said.
A report by Bloomberg said that Trump, in a series of tweets yesterday, suggested that China’s leader Xi Jinping was behind a “disinformation and propaganda attack on the United States and Europe.”
This came right before China’s annual parliament meeting tomorrow where Xi is expected to address the nation on its economic performance, 2020 gross domestic product growth target as well as its budget.
In the regional markets, the Japanese yen declined 0.07 per cent against the greenback while the Singapore dollar shed 0.14 per cent, Korean won slipped 0.09 per cent and Thai baht dipped 0.06 per cent.
Against a basket of benchmark currencies, the ringgit traded higher.
The local currency strengthened against the Singapore dollar to 3.0650/0713 from yesterday’s 3.0724/0761 and rose versus the Japanese yen to 4.0256/0341 from 4.0395/0452.
The ringgit edged higher also against the euro to 4.7562/7667 from 4.7634/7701 and appreciated against the British pound to 5.3061/3180 from 5.3359/3438 previously. — Bernama
