KUALA LUMPUR, Dec 29 — The ringgit recouped earlier losses to end higher against the US dollar today amid improving risk appetite as seen on the local equities market, a dealer said.
At 6pm, the local note rose to 4.4180/4215 against the US dollar from Wednesday’s close of 4.4230/4275.
The dealer said the US dollar also pared earlier gains on Thursday, spurred on by a rise in benchmark US Treasury yields, which hit a more than one-month high overnight as optimism surrounding China’s move to remove quarantine rules is fading as cases spread across China.
“The news that the United States had joined a list of countries to require Covid-19 testing by incoming travellers from China weighed on the US dollar,” he shared.
SPI Asset Management managing partner Stephen Innes told Bernama that the pace and strength of China’s reopening continued to be the key to the ringgit.
“The ringgit is trading well despite all the headline consternation about surging Covid-19 cases in China.
“My view is that China is very unlikely to move back into lockdowns, hence its unlikely to be a severe hit to growth,” he said.
Meanwhile, the ringgit was traded mixed against a basket of major currencies.
The local note improved against the British pound to 5.3255/3297 from 5.3257/3312 at Wednesday’s close and gained versus the Singapore dollar to 3.2770/2800 from 3.2802/2840 previously.
The ringgit depreciated vis-à-vis the Japanese yen to 3.3061/3090 from 3.3012/3048 on Wednesday and fell against the euro to 4.7078/7116 from 4.7043/7091 yesterday.
— Bernama
