Ringgit ends slightly higher against US dollar

The ringgit ended slightly higher against the US dollar today on renewed buying interest. — Reuters pic
The ringgit ended slightly higher against the US dollar today on renewed buying interest. — Reuters pic

KUALA LUMPUR, Sept 13 — The ringgit ended slightly higher against the US dollar today on renewed buying interest, said a dealer. 

At 6pm, the local unit rose to 4.1420/1470 against the greenback from last Friday’s 4.1435/1465. 

The market was closed on Monday and yesterday in conjunction with the King’s birthday and Awal Muharram.

Oanda Head of Trading Asia-Pacific Stephen Innes said while the ringgit remained insulated from an escalation of global trade tension, the currency was very susceptible to rising US interest rates as higher yield in US bonds lessens the ringgit’s appeal for foreign investors.

“The strong US economy suggests the Federal Reserve (Fed) will remain unwavering in monetary policy which is negative versus the ringgit since Bank Negara Malaysia has adopted a neutral policy tone,” he told Bernama.

Malaysia’s central bank maintained the overnight policy rate (OPR) at 3.25 per cent at its recent policy meeting.

“In general, Asia market risk is trading with a negative tone and this is not helping much either, keeping all ASEAN currencies including the ringgit on the defensive mode,” said Innes.

According to reports, the Fed is likely to have an additional two rounds of interest rate hikes in the remainder of 2018.

The ringgit was mostly higher against other major currencies.

The local note appreciated against the yen to 3.7161/7210 from 3.7406/7444 last Friday and rose against the euro to 4.8018/8093 against 4.8210/8257 previously.

It was higher against the Singapore dollar at 3.0104/0151 from 3.0139/0163 last Friday and eased against the British pound to 5.3979/3060 from 5.3725/3768. — Bernama

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