KUALA LUMPUR, Dec 30 — The ringgit ended firmer against the US dollar today as the greenback gave up earlier gains after a rally in the US Treasury yields, coupled with downbeat US economic data, sparked interest in riskier assets.
The US Dollar Index fell 0.28 per cent to 95.929, the lowest in three weeks, while preliminary estimates showed that the US goods trade deficit widened to an all-time high of US$97.78 billion in November from US$83.2 billion in the previous month, dealers said.
At 6 pm, the local note rose to 4.1750/1785 versus the US dollar from 4.1800/1805 at Wednesday’s close.
A dealer said the US dollar continued to retreat as investors shift to risk-on mode favouring riskier currencies along with equities.
“Despite the surge in Covid-19 Omicron variant in many countries, investors seemed to have priced in the risk and is looking beyond.
“Receding fears over the Omicron variant have raised hope of sustainable reopening of the economy and a better 2022 outlook. This helped to support emerging market currencies including the ringgit,” he told Bernama.
Meanwhile, the ringgit was traded mixed against a basket of other major currencies at the close today.
It improved versus the Singapore dollar to 3.0835/0865 from Wednesday’s close of 3.0856/0864, and increased against the Japanese yen to 3.6248/6281 from 3.6348/6355 previously.
The local unit depreciated vis-a-vis the British pound to 5.6187/6234 from 5.6062/6069 on Wednesday, and eased against the euro to 4.7178/7217 from 4.7150/7156 yesterday.. — Bernama
