KUALA LUMPUR, Dec 24 — The ringgit extended earlier gains to close the week on a higher note, buoyed by improved risk sentiment as worries on Omicron faded, dealers said.
At 6pm, the local note stood at 4.1935/1980 versus the greenback compared with 4.1980/2020 at yesterday’s close.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the strengthening of the local currency was driven by news that the Omicron variant might be less lethal than its predecessors.
“Such news suggests that the reopening of the economy would continue to progress well, resulting in more lively economic activities. To some degree, it would also bolster the case for higher interest rates next year,” he told Bernama.
The United Kingdom’s Health Security Agency (UKHSA) reportedly said the risk of hospitalisation for an individual with the Omicron variant was between 50 per cent and 70 per cent lower compared with the previously dominant Delta strain.
They are also between 31 per cent and 45 per cent less likely to attend emergency departments with Omicron than with Delta, the government agency was quoted as saying.
Meanwhile, the ringgit was traded mixed against a basket of other major currencies.
It rose against the Japanese yen to 3.6660/6702 from 3.6721/6760 yesterday and strengthened vis-a-vis the British pound to 5.6226/6287 from 5.6257/6311.
The domestic unit, however, depreciated versus the Singapore dollar to 3.0887/0954 from yesterday’s 3.0874/0908 and weakened against the euro to 4.7567/7618 from 4.7521/7567 previously. — Bernama
