RINGGIT ENDS HIGHER AGAINST US DOLLAR ON IMPROVED SENTIMENT

By Karina Imran

KUALA LUMPUR, March 21 (Bernama) -- The ringgit ended higher against the US dollar on improved sentiment towards the local currency, said an analyst. 

The local note rose to 4.4180/4220 against the greenback from Thursday's close of 4.4215/4270. 

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the ringgit opened lower this morning at 4.4245/4360 versus the US dollar, but strengthened throughout the day. 

"Despite initial weakness following the Federal Open Market Committee's (FOMC) mildly dovish stance, the ringgit managed to gain ground as US treasuries remained stable, providing no strong signals for capital flows that could have exerted downward pressure. 

"Asian currencies, including the ringgit, recorded brief gains post-FOMC, though the reaction was short-lived as markets remained cautious ahead of key global developments," he told Bernama.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest consumer price index (CPI) print showed the inflation rate in Malaysia is moderating to 1.5 per cent in February after registering 1.7 per cent for two consecutive months before that. 

However, core inflation rate is creeping up to 1.9 per cent from 1.8 per cent previously. 

"This suggests the BNM might want to maintain the overnight policy rate (OPR) steady as inflation could be higher in the second half of the year as policy adjustments on fuel could have an impact on the inflation dynamics. 

"This could provide some support to ringgit owing to the narrowing of interest rate differentials as other countries have begun to cut their policy rates," he said. 

The ringgit traded higher against a basket of major currencies.   

It improved against the euro to 4.7843/7886 from 4.7973/8033 at Thursday’s close, increased against the British pound to 5.7151/7203 from 5.7276/7347 and gained against the Japanese yen to 2.9574/9602 from 2.9728/9767.  

The local note also strengthened against ASEAN currencies. 

It edged up against the Singapore dollar to 3.3081/3114 from 3.3117/3164 at the previous close, climbed against the Philippine peso to 7.70/7.71 from 7.72/7.74, ticked up against the Indonesian rupiah to 267.7/268.0 from 268.1/268.6 and gained against the Thai baht to 13.0436/0608 from 13.1163/1388 at yesterday’s close. -- BERNAMA