Ringgit ends slightly higher tracking the positive equity market

KUALA LUMPUR: The ringgit ended slightly higher against the US dollar today on mild demand, tracking the positive sentiment on the equity market despite the firmer greenback, analysts said.

At 6 pm, the local note improved to 4.6865/6920 against the greenback from Thursday’s close of 4.6890/6940.

SPI Asset Management managing director Stephen Innes said the sentiment has also been temporarily buoyed in Asia markets by talk of China allowing a higher percentage of foreign investment in local companies, and that is good news for local markets.

“I think investors do not want to close the week too long dollars against the ringgit in case some supportive policy announcements from China are made over the weekend.

“Locally, Malaysia Consumer Price Index (CPI) headline inflation was broadly unchanged which is a mixed messaging for currency markets. For the economy it is good news but it also supports the idea that Bank Negara Malaysia will remain on hold,” he told BK.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit was seen to be well supported at RM4.6875 today while the US dollar index (DXY) was higher by 0.21 per cent to 105.586 points.

“The oversold condition in ringgit may have resulted in buying activities among the traders,” he added.

The ringgit was traded higher against a basket of major currencies.

It rose against the Japanese yen to 3.1593/1632 from 3.1650/1686 at Thursday’s close, advanced against the euro at 4.9860/9918 from 4.9947/5.000, and was better versus the British pound at 5.7372/7439 from 5.7632/7694 yesterday.

At the same time, the local note was traded mixed against other Asean currencies.

It weakened vis-a-vis the Singapore dollar to 3.4313/4359 from 3.4271/4310 on Thursday and fell versus the Thai baht to 13.0119/0322 from 12.9695/9880 previously.

It slightly appreciated against the Indonesian rupiah to 304.7/305.3 from 304.9/305.4 at Thursday’s close and was flat against the Philippine peso at 8.25/8.26. – BK