KUALA LUMPUR, Oct 1 — The ringgit continued its positive momentum to close higher against the US dollar today, supported by improved risk sentiment, said a dealer.
As at 6pm, the local currency was traded at 4.1470/1520 versus the greenback compared with 4.1530/1580 yesterday.
AxiCorp chief global market strategist Stephen Innes said a sturdy beta to the yuan, as well as a stabilising local equity market, should continue to push the ringgit higher.
“Overall support for the local note came after (RHB Investment Bank’s) forecast of a smaller budget deficit next year and this gives a positive mood muscle to currency traders who love fiscal prudence,” he told Bernama.
RHB Investment Bank, in a note today, said Malaysia’s fiscal deficit was expected to narrow to five per cent of the gross domestic product in 2021 compared to the 6.5 per cent deficit projected for this year.
However, Innes said that with the spike in local Covid-19 cases today, it would cause a bit of a panic as the government would review some recovery movement control order (RMCO) regulations.
Today, Malaysia reported 260 new cases of the Covid-19 — the second-highest since February 2020.
Meanwhile, the ringgit was traded mixed against other major currencies.
It declined against the Singapore dollar to 3.0426/0473 from yesterday’s close of 3.0316/0361 but was marginally higher against the British pound at 5.3281/3362 against 5.3283/3264 previously.
The local currency fell against the euro to 4.8723/8794 from 4.8619/8694 yesterday but rose versus the yen to 3.9278/9341 from 3.9290/9349. — Bernama
