KUALA LUMPUR (Jan 5): The ringgit extended its upbeat momentum to end higher against the US dollar on Thursday (Jan 5) amid improving risk appetite as seen on the local equities market as China’s reopening moves at full throttle, a dealer said.

At 6pm, the local note appreciated to 4.3860/3915 versus the greenback from Wednesday’s close of 4.3960/4010.

SPI Asset Management managing partner Stephen Innes said Thursday is a very positive day for the ringgit as China reopens after three years of border control.

He said that with evidence of the peak of Covid-19 in China, tourist destinations for Chinese travellers, like Malaysia, are expecting a tourism boost.

“This is boosting local currency sentiment,” he told Bernama.

Innes also opined that the market is also pricing to beat inflation and peak the US interest rates, which is helping the firmer ringgit performance.

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

It rose against the British pound to 5.2781/2847 from 5.3011/3072 at Wednesday’s close and appreciated against the euro to 4.6588/6647 from 4.6650/6703.

The local currency also strengthened versus the Singapore dollar to 3.2748/2794 from 3.2823/2863 and improved vis-a-vis the Japanese yen to 3.3104/3148 from 3.3694/3734 previously.