KUALA LUMPUR, Oct 14 — The ringgit continued its uptrend to end firmer against the US dollar today amid strong commodity prices and risk-on mode in the equity market, dealers said.
At 6pm, the local note strengthened to 4.1525/1560 versus the greenback from Wednesday’s closing of 4.1590/1610.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit gained more strength today against the US dollar when the currency pair fell to as low as RM4.15 before ratcheting up to RM4.157.
“The greenback also retreated further against major currencies on news of higher inflation in the United States alongside the US Federal Open Market Committee minutes which suggested that the quantitative easing tapering decision could happen in November.
“Apart from that, the ringgit was also supported by foreign interest in the Malaysian equity market which continued to record net purchases in the past few days. In a nutshell, it’s a risk-on mode at the moment,” he told Bernama.
Meanwhile, Hong Leong Research, in a note, said the economic reopening optimism and recent rallies in crude oil and crude palm oil prices had continued to offer support to the local currency.
“The further decline in broad US dollar overnight may also reinforce bullish ringgit sentiment, paving the way to target 4.1535 next, before breaching 4.1500,” it added.
However, the ringgit was traded lower against a basket of major currencies.
It depreciated against the British pound to 5.6985/7033 from 5.6675/6702 at Wednesday’s close and slipped against the Singapore dollar to 3.0807/0835 compared with 3.0739/0758 yesterday.
The local note also fell vis-a-vis the euro to 4.8215/8255 from 4.8074/8097 on Wednesday and declined versus the Japanese yen to 3.6638/6672 from 3.6611/6632 previously. — Bernama
