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Renewed buying interest gives ringgit a boost
Published on: Friday, January 20, 2023
By: Bernama
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Renewed buying interest gives ringgit a boost
Kuala Lumpur: The ringgit extended yesterday’s gains to open higher against the US dollar today on renewed buying interest.

At 9am, the local currency appreciated to 4.2975/4.3015 against the greenback from yesterday’s close of 4.3050/4.3100.

This is the last trading day of the Lunar Year of the Tiger. The Chinese community will user in the Year of the Rabbit on Sunday.

Solid economic numbers recorded by Malaysia in the last few months helped the ringgit advance against the US dollar, according to ActivTrades trader Dyogenes Rodrigues Diniz.

Malaysia is, in fact, posting stronger data than major developed economies such as the US and the EU.

Bank Negara Malaysia (BNM) decided to keep the interest rate unchanged at 2.75% at its first monetary policy committee meeting of the year yesterday, reassured by low inflation and steady employment data.

However, Diniz said, the market was expecting BNM to raise the interest rate by 25 basis points to 3% and this discrepancy could lead to a devaluation of the Malaysian currency over the next few days as government bonds will pay a lower interest to investors.

“From a technical point of view and considering the current monetary policy scenario, the ringgit could go down to 4.3600-4.4400 against the greenback within a few days,” he told Bernama.

Meanwhile, the ringgit was traded mixed against a basket of major currencies.

It depreciated against the Singapore dollar to 3.2510/3.2543 from 3.2483/3.2523 and slipped to 5.3220/5.3270 against the British pound from 5.3111/5.3172 at yesterday’s close.

The local unit, however, strengthened versus the euro to 4.6551/4.6594 from 4.6602/4.6656 and rose vis-a-vis the Japanese yen to 3.3407/3.3441 from 3.3544/3.3588 at yesterday’s close.

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