Ringgit Ends Firmer Against US Dollar

The ringgit traded stronger at the close today, supported by improving global risk sentiment which triggered a weaker US dollar. As of 6pm, the local currency was traded at 4.1540/1590 versus the greenback compared with 4.1730/1780 yesterday. AxiCorp chief global market strategist Stephen Innes said. 

The ringgit retreated from its recent gains to close lower against the US dollar today despite a recovery in oil prices, amid fresh concerns over Covid-19 as the number of cases increased globally. A dealer said fears of a “second wave” of coronavirus cases intensified in several US states including Arizona, Florida, and the Carolinas that had put investors in a cautious mode. “The rising cases in the United States are worrying and renewed lockdowns in these (affected) states are pretty much unlikely."

The US dollar index (DXY), which measures the greenback's value against major currencies, extended its losses for the third consecutive day, amidst renewed expectations for the additional United States (US) fiscal stimulus and coronavirus vaccine before the year-end, dealers said. At 9 am, the local currency stood at 4.1440/1500 versus the greenback, compared with 4.1420/1460 at Wednesday’s close.

Meanwhile, the ringgit also fell against other major benchmark currencies. It decreased against the Singapore dollar to 3.0657/0717 from 3.0614/0662 recorded at Friday’s close and fell against the Japanese yen to 3.9987/9080 from 3.9897/9964. The local currency depreciated vis-a-vis the British pound to 5.3035/3151 from 5.2983/3075 and weakened against the euro to 4.7954/7052 from 4.7854/7926 previously. — Bernama. 

However, the stronger Chinese yuan, the stimulus impulse by US Presidential candidate, Joe Biden, and the weaker US dollar will help assuage the ringgit's concerns in line with Asian currency markets, which seemed to be running with Blue Wave stimulus hopes, he said. Bank Islam chief economist Dr. Mohd Afzanizam Abdul Rashid said the US dollar weakness was quite prevalent, with the greenback depreciating against the Japanese yen and the euro.

At the opening, the ringgit was also traded lower against other major currencies. It declined against the Singapore dollar to 3.0569/0618 from Wednesday’s close of 3.0555/0596  and decreased against the British pound to 5.4452/4535 from 5.4066/4122 yesterday. The local currency fell versus the yen to 3.9602/9671 from 3.9481/9531 and slipped against the euro to 4.9090/9178 from 4.9058/9109 previously.