KUALA LUMPUR, October 14 – The ringgit continued its bullish trend to finish stronger against the US dollar today amid high commodity prices and a risky mode in the equity market, brokers said.
At 6 p.m., the local note strengthened to 4.1525 / 1560 against the greenback of Wednesday’s close at 4.1590 / 1610.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit strengthened against the US dollar today when the currency pair fell to RM 4.15 before rising to 4.157 RM.
“The greenback also retreated further against major currencies following the announcement of higher inflation in the United States, alongside the minutes of the United States Federal Open Market Committee which suggested that the decision to QE could take place in November.
“Apart from that, the ringgit has also been supported by foreign interest in the Malaysian equity market which has continued to record net buys in recent days. In a nutshell, it is a mode of risk at the moment. He told Bernama.
Meanwhile, Hong Leong Research, in a note, said optimism about the economic reopening and recent crude oil and crude palm oil price hikes continued to provide support to the local currency.
“The further decline in the US dollar overnight could also strengthen bullish ringgit sentiment, paving the way for the next target of 4.1535, before breaking above 4.1500,” he added.
However, the ringgit traded lower against a basket of major currencies.
It depreciated against the British pound to 5.6985 / 7033 from 5.6675 / 6702 at Wednesday’s close and slipped against the Singapore dollar to 3.0807 / 0835 from 3.0739 / 0758 yesterday.
The local rating also fell against the euro to 4.8215 / 8255 from 4.8074 / 8097 on Wednesday and fell against the Japanese yen to 3.6638 / 6672 against 3.6611 / 6632 previously. – Bernama