Ringgit closes higher as dollar retreats

KUALA LUMPUR, Dec 28 — The prospect for the ringgit to end 2017 on a firm note looks promising, with the currency closing at its intraday-high against the US dollar today, spurred by the broadly weaker greenback.

At 6pm, the local unit stood at 4.0650/0680 versus the US dollar from 4.0810/0850 yesterday.

The ringgit, which opened higher earlier, was persistently traded in a positive territory with the momentum always on the uptrend throughout the day.

Speaking to Bernama today, a dealer said the US dollar was on defensive mode, hammered by a recent dip in the country’s 10-year bond yields following a weaker-than-expected US Consumer Confidence Index released on Wednesday.

“With the passage of a long-awaited US tax reform bill failing to impress the market, coupled with depressed economic data, this translates into a brighter outlook for emerging currencies, including the ringgit,” he said, adding the rising oil prices also lend support to the ringgit sentiment.

Meanwhile, the ringgit was traded firmer against a basket of major currencies.

It surged against the Singapore dollar to 3.0372/0401 from 3.0453/0490 and appreciated vis-a-vis the yen to 3.6002/0041 from 3.6054/6099 yesterday. 

The local unit rose against the euro to 4.8495/5543 from 4.8507/8571 and strengthened versus the British pound to 5.4654/4711 from yesterday's 5.4710/4776. — Bernama

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