Ringgit extends gains against US dollar

Ringgit extends gains against US dollar
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KUALA LUMPUR (Oct 11): The ringgit extended its gains to close higher against the US dollar on Monday on positive sentiment surrounding the market and optimism on economic recovery, dealers said.

At 6pm, the local note rose to 4.1685/1720 versus the greenback from Friday (Oct 8)'s closing of 4.1750/1800. 

Bank Islam chief economist Mohd Afzanizam Abdul Rashid said the local currency performed well on Monday, as it strengthened to as high as RM4.1652.

“The uplift in the interstate travel ban has brought about positive sentiment which had supported the value of ringgit on expectation of livelier economic activities.

“To some degree, it would also mean better Gross Domestic Product growth; thereby further monetary policy accommodation is unwarranted,” he told Bernama.

He said that higher commodity prices had also been a boon to the value of ringgit given the intricacy of oil and gas sector to the Malaysian economy.

In a nutshell, he added, the ringgit was poised for further appreciation but concerns over China’s property market and the geopolitical development between the US and China could, intermittently, result in risk-off mode setting in.

At the close, the ringgit was traded mostly higher against a basket of major currencies, except the Singapore dollar.

It appreciated against the British pound to 5.6779/6827 from last Friday’s close of 5.6880/6948 and rose versus the Japanese yen to 3.6902/6933 from 3.7320/7368 previously.

The local note also gained vis-a-vis the euro to 4.8180/8220 from 4.8292/8350 on Friday last week but slipped against the Singapore dollar to 3.0775/0803 compared with 3.0771/0810 previously.