KUALA LUMPUR, Dec 28 — The ringgit ended lower against the US dollar at the close today in line with the performance of regional currencies as the greenback remained firm, supported by a spike in the benchmark United States (US) Treasury yields.
At 6 pm, the local note fell to 4.4230/4275 against the US dollar from yesterday’s close of 4.4205/4255.
A dealer said traders remained concern over the recent surge of Covid-19 cases in China which might again hamper the growth of the world’s second largest economy.
“Investors were optimistic after China, the largest trade partner in Asia, said on Tuesday it would relax inbound quarantine restrictions,” he said.
SPI Asset Management managing partner Stephen Innes told Bernama that after a rocky start today, the ringgit sentiment improved throughout the session.
“Locals continued to sell the US dollars on any sign of ringgit weakness, thinking that an inward Chinese tourism boom is months away based on mainland policymakers fast-tracking the reversal of zero COVID-19 policy.
“But despite a 200 percentage in point (pip) trading range, we actually ended up coming full circle and finished a touch weaker on the day. I think fits and starts will be a common theme for the ringgit around the China reopening narrative,” he added.
Meanwhile, the ringgit was traded higher against a basket of major currencies.
The local note strengthened against the British pound to 5.3257/3312 from 5.3267/3327 at Tuesday’s close and appreciated vis-a-vis the Japanese yen to 3.3012/3048 from 3.3182/3222 previously.
The ringgit also gained versus the Singapore dollar to 3.2802/2840 from 3.2847/2889 yesterday and rose against the euro to 4.7043/7091 from 4.7092/7145. — Bernama
