KUALA LUMPUR, Jan 4 — The ringgit ended higher against the US dollar on the first trading day of the year in line with Asia’s emerging currencies, as buying interest continued from last week on optimism over global growth recovery in 2021 amid vaccine rollout.
At 6pm, the local currency rose to 4.0040/0090 versus the greenback from last Thursday’s close of 4.0200/0250.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the US dollar weakness and firm Brent crude oil price, which hovered close to US$53 (RM212) per barrel, had been the main underpinning factors for the ringgit’s appreciation.
“The risk-on mode has been prevalent. The US Dollar Index (DXY) has skidded further to 89.548 points today while other currencies such as the Japanese yen, euro and Aussie dollar have all been rising.
“Going forward, data on the US Institute of Supply Management’s Manufacturing Purchasing Managers’ Index and the nonfarm payroll will be closely watched to gauge the strength of the US economy in December,” he told Bernama.
He noted the decision by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) on the oil production quota would also be on investors’ radar this week.
“The current support level is located at RM3.9939,” he said.
The ringgit was traded mostly higher against other major currencies, except the Singapore dollar.
It appreciated vis-a-vis the Japanese yen to 3.8968/0021 from 3.9018/9078 last Thursday, rose versus the euro to 4.9213/9291 from 4.9358/9427, and strengthened against the British pound to 5.4743/4827 from 5.4905/4977 previously.
However, the local note slipped against the Singapore dollar to 3.0402/0450 from 3.0395/0444 last Thursday. — Bernama
