KUALA LUMPUR, Dec 31 — The ringgit ended higher against the US dollar on the last trading day of the year, extending yesterday’s gain amid window dressing activity and risk-on mode as seen in the equity market, dealers said.
At 6 pm, the local note rose to 4.1650/1680 versus the US dollar from 4.1750/1785 at Thursday’s close.
Hong Leong Bank Research said the ringgit has been relatively resilient in the medium term, taking into account further economic recovery after the government relaxed more Covid-19 related restrictions.
“We are neutral to slightly bearish on the pair given the mixed US dollar sentiment overnight, while window dressing activity on the last day of 2021 had tilted the pair lower today, with immediate support at 4.1700,” it noted.
On a year-on-year basis, the ringgit depreciated 3.59 per cent at the close today, compared with 4.0203/0250 registered on Dec 31, 2020.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit had been quite volatile during the year against the US dollar, having moved from as high as RM4.005 at the start of the year to as low as RM4.24 during the second half of the year.
“However, the ringgit has been improving thanks to the ongoing global recovery which has helped underpin the Malaysian economy especially for the export-oriented sector,” he told Bernama.
The ringgit was traded mostly lower against a basket of other major currencies at the close today, except the Japanese yen.
It depreciated vis-a-vis the British pound to 5.6277/6318 from 5.6187/6234 on Thursday, and eased against the euro to 4.7194/7228 from 4.7178/7217 yesterday.
The local unit slipped versus the Singapore dollar to 3.0872/0899 from Thursday’s close of 3.0835/0865, but increased against the Japanese yen to 3.6186/6212 from 3.6248/6281 previously.
— Bernama
