Ringgit ends higher after correcting oversold position

KUALA LUMPUR: The ringgit made a correction from its oversold position to end Tuesday on a positive note against the US dollar.

At 6 pm, the ringgit inched up to 4.7825/7865 against the greenback from Monday’s close of 4.7900/7975, its lowest level versus the US dollar in 25 years.

Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said bargain-hunting activities suggest further appreciation of the ringgit may be in the offing.

On top of that, he believed the ringgit could also receive renewed interest due to some positive development on the Israel-Hamas conflict.

“Yesterday, two hostages were freed by Hamas along with the arrival of humanitarian aid in Gaza.

“However, markets are still anxious about the possible ground offensive by the Israelis and when that happens, how it will change the dynamics of the present conflict,” he said.

Bank Negara Malaysia said the current ringgit movements appear to be more heavily influenced by global events and do not reflect the nation’s economic fundamentals.

Therefore, BNM governor Datuk Abdul Rasheed Abdul Ghaffour will ensure that the central bank do whatever is necessary to ensure the ringgit continued to adjust in an orderly manner.

The ringgit, however, eased versus a basket of major currencies.

It slipped against the euro to 5.0881/0924 from 5.0736/0815 at the close on Monday, decreased versus the British pound to 5.8557/8606 from 5.8179/8270 yesterday, and fell against the Japanese yen to 3.1960/1989 from 3.1935/1985 previously.

Meanwhile, the local note was traded mostly lower against other Asian currencies, except for the Philippine peso, where it rose to 8.42/8.43 from 8.43/8.44 previously.

The ringgit decreased against the Indonesian rupiah to 301.7/302.1 from 300.5/301.2 at Monday’s close, inched down versus the Thai baht to 13.2186/2352 from 13.1104/1359 yesterday and weakened vis-a-vis the Singapore dollar to 3.5003/5035 from 3.4731/4767. – BK