Ringgit higher against US dollar, tracking firmer yuan

At 6pm, the domestic unit advanced to 4.1300/1340 against the greenback from yesterday’s close of 4.1440/1490. — Reuters pic
At 6pm, the domestic unit advanced to 4.1300/1340 against the greenback from yesterday’s close of 4.1440/1490. — Reuters pic

KUALA LUMPUR, Sept 15 — The ringgit ended higher against the US dollar, tracking the firmer Chinese yuan, a dealer said.

At 6pm, the domestic unit advanced to 4.1300/1340 against the greenback from yesterday’s close of 4.1440/1490.

AxiCorp chief global market strategist Stephen Innes said the yuan was driving currency sentiment in Asia today on two fronts — better China trade activity data and China’s extension of tariff exemptions on some US goods for one year.

He said the market expected some pause for the local note on the bullish proceedings ahead of the US Federal Open Market Committee (FOMC) meeting tomorrow.

“However, with the stronger yuan foretelling a weaker greenback, I would expect the ringgit to pick up post-FOMC meeting once the risk has been cleared,” he told Bernama.

According to Innes, unless there is a surprise at the FOMC meeting, traders do not think this week’s meeting would matter much to markets.

“The next important catalyst is probably the Covid-19 vaccine results in late September or early October,” he added.

Against other major currencies, the ringgit was traded mixed.

It depreciated against the Singapore dollar to 3.0352/0386 from 3.0321/0369 today and eased against the British pound to 5.3256/3324 from 5.3230/3315.

The local currency strengthened against the euro to 4.9060/9124 from 4.9119/9195 and was slightly firmer against the yen to 3.9062/9111 from 3.9080/9138 previously. — Bernama

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