KUALA LUMPUR: The ringgit continued last week’s upward momentum to close firmer against the US dollar today as sentiment for the greenback remained fragile due to the intensified US-China trade war that helped push risk appetite for the local currency.
At 6 pm, the ringgit rose to 4.1700/1730 against the US dollar from 4.1780/1830 recorded last Friday.
A dealer said global risk sentiment has improved after both countries said they will restart trade talks next month.
The growing optimism spurred the benchmark US Treasury yields to three-week highs as investors ventured into riskier assets, he said
“Investors are accumulating their positions for US assets as safe-haven investments, but at the same time this has also improved demand for other currencies as well.
“The recent (Malaysian) export numbers, which rebounded in July, also lend support to sentiment locally,” he told Bernama.
Against other major currencies, the ringgit was traded mixed.
It fell against the Singapore dollar to 3.0224/0254 from 3.0221/0261 last Friday and weakened versus the British pound to 5.1387/1432 from 5.1385/1463.
The local currency, however, increased against the Japanese Yen to 3.8852/8891 from 3.9050/9101 and improved vis-a-vis the euro to 4.6062/6099 from 4.6079/6147.
The single currency was under pressure ahead of the European Central Bank (ECB) meeting on Thursday, when the central bank is expected to deliver a package of extra monetary stimulus as economic growth falters.
The ECB benchmark rate now stands at minus 0.40%t and market analysts expect the central bank to cut the rate by 20 basis points during the meeting.
The local market was closed yesterday for the birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah. — Bernama
source https://www.thesundaily.my/business/ringgit-remains-higher-against-us-dollar-LX1356841
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