Ringgit appreciates against US dollar in early trade

Ringgit appreciates against US dollar in early trade
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KUALA LUMPUR (Nov 24): The ringgit extended its positive run against the US dollar on Thursday (Nov 24), improving further to the 4.55 level on expectations of softer US inflation and less aggressive US Federal Reserve’s rate hikes, said an analyst. 

At 9am, the local note had climbed 195 percentage in points to 4.5530/5600 against the greenback from Wednesday’s close at 4.5725/5775.

SPI Asset Management managing director Stephen Innes said steadier crude oil prices earlier this week also provided support for the local note.

“The only thing holding the ringgit back from rallying higher was the rise in Covid-19 cases in China,” he told Bernama. 

Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said it is likely that the market would remain a little more quiet than usual until next week, due to the US Thanksgiving holiday.

“Next week's most important macroeconomic event is the release of US non-farm payroll data, which will offer more clues about the strength of the US economy,” he said.

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

The local note slid versus the Singapore dollar to 3.3074/3130 from 3.3053/3094 at Wednesday’s close, and shrank against the euro to 4.7419/7492 from 4.7202/7254.

It also further depreciated versus the pound to 5.4968/5053 from 5.4495/4555, and fell vis-a-vis the yen to 3.2715/2768 from 3.2344/2382.