RINGGIT STAGES STRONG REBOUND TO END LOSING STREAK AGAINST US DOLLAR

By Siti Radziah Hamzah

KUALA LUMPUR, Dec 23 (Bernama) -- The ringgit staged a strong rebound to end higher against the greenback on Monday as rising commodity prices and a softer US inflation reading helped the local currency snap a recent run of losses against the American dollar.

At 6 pm, the local currency bounced to 4.4870/4925 versus the US dollar from last Friday’s close of 4.5055/5100. 

SPI Asset Management managing partner Stephen Innes said the ringgit found some support from rising natural gas and oil prices, allowing the ringgit to finally close in the green today. He said the ringgit typically strengthens with higher crude oil prices.

Before today’s gain, the ringgit had endured two full weeks of losses against the greenback.

“The ringgit kicked off the day on an optimistic note, buoyed by Friday's softer-than-expected US personal consumption expenditures (PCE) data, which initially caused 10-year US (bond) yields to dip. However, as the day progressed, the US dollar regained some strength, influenced by the lingering threat of US tariffs,” Innes told Bernama. 

Inflation in the United States, as measured by the PCE Price Index, rose 2.4 per cent on a yearly basis in November, lower than the estimate for a 2.5 per cent rise.

Innes noted that the higher ringgit closing also marked a divergence from the trading of the US dollar and offshore yuan, which ended the day in the red.

The ringgit traded mostly higher against other major currencies.  

It eased against the British pound to 5.6384/6453 from 5.6328/6384 but improved against the euro to 4.6692/6749 from 4.6776/6823 on Friday and was higher against the Japanese yen at 2.8636/8673 versus 2.8747/8779. 

The ringgit was mixed against ASEAN currencies.  

It gained against the Singapore dollar to 3.3095/3138 from 3.3146/3181 but fell against the Thai baht to 13.1137/1360 from 13.0670/0861. It climbed versus the Indonesian rupiah to 276.9/277.5 from 277.7/278.1 and dipped against the Philippine peso to 7.67/7.68 from 7.66/7.67. 

-- BERNAMA