KUALA LUMPUR, Sept 3 — The ringgit ended higher against the US dollar today as improving risk sentiment continued to bolster demand.
At close, the local currency was quoted at 4.1420/1450 against the greenback from yesterday’s close of 4.1430/1490.
Earlier, the local unit hit its intra-day high of 4.1330 as extended uptrend of the crude palm oil prices, following production concerns and possible interest cuts, continued to boost interest despite a stronger dollar.
The market is expecting further demand for Malaysian Government Securities (MGS) as investors expect a favourably yield if Bank Negara Malaysia slashes rates again.
AxiCorp chief global market strategist Stephen Innes said the dollar is on the uptrend ahead of the European Central Bank’s Sept 10 meeting.
“The market thinks the European Central Bank’s rate decision next week might be an actionable event due to low inflation and a strong Euro.
“That might mean the ECB will talk the Euro lower or even cut rates to contain the impact of Covid-19 on the euro zone,” he told Bernama.
The ringgit traded mostly higher against other major currencies.
It went up against the Singapore dollar to 3.0351/0380 from yesterday’s 3.0445/0494 and was higher against the yen at 3.8929/8968 from 3.9037/9101.
The ringgit appreciated against the British pound to 5.4981/5037 from 5.5367/5451 and rose against the euro to 4.8967/9015 from 4.9173/9261. — Bernama
