Ringgit extends gains against greenback

25 Nov 2022 01:19pm
Photo for illustration purposes only - Source: 123RF
Photo for illustration purposes only - Source: 123RF

KUALA LUMPUR - The ringgit continued its positive momentum this morning, rising by 0.38 per cent against the US dollar at the opening today, reflecting the positive sentiments following the clarity in Malaysia’s political tussle and the United States(US) Federal Reserve’s signal of a downshift in rate hikes.

At 9 am, the local note further strengthened to 4.4760/4810 against the greenback from Thursday’s close of 4.4910/5000.

SPI Asset Management managing director Stephen Innes said there was a huge follow-through on Malaysia’s stock market following the appointment of Datuk Seri Anwar Ibrahim as Malaysia’s 10th Prime Minister, which helped the ringgit to attract foreign investments.

The Pakatan Harapan chairman was sworn in as the prime minister at the Istana Negara yesterday.

"However, a big driver of sentiment going forward will be the softer interest rate hikes indicated by the Federal Open Market Committee’s (FOMC) minutes,” he told Bernama.

Nevertheless, he expects the market to be quiet with the US celebrating the Thanksgiving holiday this weekend.

Meanwhile, ActivTrades trader Dyogenes Rodrigues Diniz said the decline in the US dollar seems like a natural market correction after the prolonged greenback rally, which saw the US currency hitting multiple highs over the past two years.

"The US dollar registered a cumulative gain of almost 19 per cent against the ringgit during that time.

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"Most of the buyers who have benefited from that rise are now taking profit as they are wary of the market's cyclical behaviour, which is now causing a retracement,” he said.

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

The local note climbed versus the Singapore dollar to 3.2522/2561 from 3.2678/2749 at Thursday’s close and gained against the euro to 4.6573/6625 from 4.6792/6886 previously.

It had also appreciated versus the British pound to 5.4169/4229 from 5.4305/4414 and increased vis-a-vis the Japanese yen to 3.2199/2237 from 3.2412/2479 yesterday. - BERNAMA