KUALA LUMPUR, Oct 20 — The ringgit closed higher and constructive against the US dollar today following the elevated levels of commodity prices as well as the gradual reopening of the economy which could translate into better economic prospects.
At 6pm, the local note jumped 110 basis points (bps) to 4.1580/1615 versus the greenback from 4.1690/1700 at Monday’s close.
The market was closed yesterday for the Maulidur Rasul holiday.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said investors would be focusing on Budget 2022’s key macroeconomic targets.
“The deficit target would likely be narrower as the government remains committed to keeping the deficit within a reasonable level that promotes growth while remaining responsible in ensuring the fiscal shortfall is contained,” he told Bernama.
As such, he said, the ringgit was expected to remain in a tight range in the immediate term.
From the technical point of view, Mohd Afzanizam said, the local note was nearing the vicinity of an overbought condition; therefore, some technical correction could be expected following the ringgit’s sharp rise recently.
The ringgit was traded mostly lower versus a basket of major currencies except the yen, against which it inched up to 3.6327/6361 today from 3.6449/6461 at Monday’s close.
The local note depreciated against the Singapore dollar to 3.0919/0947 from 3.0875/0884, slipped vis-a-vis the British pound to 5.7260/7308 from 5.7245/7258, and eased versus the euro to 4.8328/8369 from 4.8285/8297. — Bernama