RINGGIT STRENGTHENS VS US DOLLAR, MAJOR CURRENCIES ON POSITIVE FISCAL DEVELOPMENTS

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Dec 22 (Bernama) -- The ringgit opened higher against the US dollar and other major currencies on Monday as positive developments in the government of Malaysia’s fiscal position have contributed significantly to the ringgit’s appreciation.

At 8 am, the ringgit strengthened to 4.0730/0840 against the US dollar from 4.0740/0785 at Friday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the possible monetary easing in the United States also contributes to the higher local note.

“The ringgit has performed extremely well against the US dollar and other regional currencies in the past few weeks. Such dynamics will continue to dictate the US dollar-ringgit pairing today,” he told Bernama.

Nonetheless, Mohd Afzanizam said the ringgit is seen to be in an overbought condition, suggesting traders and investors might be tempted to realise gains, hence, he expects the US dollar-ringgit pair to trade within a narrow range today.

At the opening, the ringgit traded higher against a basket of major currencies.

It improved against the Japanese yen to 2.5839/5912 from 2.5909/5940, rose against the British pound to 5.4489/4636 from 5.4514/4574 and edged up against the euro to 4.7691/7820 from 4.7715/7767 at Friday’s close.

The local currency traded mostly higher against ASEAN peers.

It appreciated against the Singapore dollar to 3.1505/1595 from 3.1515/1553, inched up against the Indonesian rupiah to 243.1/243.9 from 243.2/243.6, gained against the Philippine peso to 6.93/6.96 from 6.94/6.95, but eased versus the Thai baht to 12.9643/13.0060 from 12.9428/9620.

-- BERNAMA