KUALA LUMPUR, Aug 19 ― The ringgit climbed to a five-month high against the US dollar today as the greenback continued to lose ground amid record-low interest rates, said an analyst.
At 6pm, the local currency was pegged at 4.1700/1750 against the US dollar from Tuesday’s close of 4.1800/1850.
AxiCorp chief global market strategist Stephen Innes said the fall in US yields has benefitted the Malaysian Government Securities’ real returns, making it even overly bountiful by comparison.
“But it's the compression in developed market yields (European Union and the US) that is sending investors on a reach for yield. So, Malaysia is looking like a prime destination for yield-seeking investors,” he told Bernama.
The local unit strengthened against the Singapore dollar to 3.0572/0620 from 3.0625/0666 on Tuesday and was almost flat against the yen at 3.9575/9634 from 3.9576/9627 yesterday.
The ringgit rose against the euro to 4.9679/9841 from 4.9746/9818 but fell against the British pound to 5.5173/5248 from 5.5051/5133 previously. ― Bernama
