KUALA LUMPUR, Dec 5 — The ringgit closed higher against the US dollar today, buoyed by positive sentiment following China’s reopening that will continue to drive investors to Asia markets.
At 6pm, the local note strengthened to 4.3660/3715 against the greenback from 4.3835/3925 at Friday’s (December 2) closing.
SPI Asset Management managing director Stephen Innes said the ringgit was riding the US dollar/Chinese yuan coattails, which slid convincingly below the 7.00 level as reopening enthusiasm continued to drive investors to Asia markets.
Investors seem to view current levels as a once-in-a-generational entry point for Chinese stocks.
“This optimism continues to cause a demand for local Asian currencies as China-sensitive assets trade higher,” he told Bernama.
Innes said China’s foreign exchange traders needed to sell dollars ahead of the anticipated inflows.
“A similar dynamic is playing out in Malaysia as expectations of an export boom to China see currency operators pricing in a much stronger ringgit,” he added.
Meanwhile, the ringgit also traded higher against a basket of major currencies.
The local note appreciated against the euro to 4.6087/6146 from 4.6136/6231 at the close on Friday and improved versus the Singapore dollar to 3.2379/2425 from 3.2463/2535.
It rose against the British pound to 5.3632/3700 from 5.3781/3892 last Friday and went up vis-a-vis the Japanese yen to 3.2291/2334 from 3.2698/2768 previously.
— Bernama
