Ringgit opens higher as trade deal boosts risk sentiment

  • Forex
  • Friday, 27 Dec 2019

KUALA LUMPUR: The ringgit opened higher against the US dollar today, supported by sentiment brought by positive developments surrounding the US-China phase one trade deal, a dealer said.

A Chinese foreign ministry spokesperson said on Wednesday that negotiators are "in close communication" about signing the trade deal while earlier, US President Donald Trump had said that there will be a signing ceremony for him and Chinese President Xi Jinping to ink it.

At 9am, the ringgit was traded at 4.1300/1350 versus the US dollar from Thursday's close of 4.1310/1350.

AxiTrader chief Asia market strategist Stephen Innes said the ringgit continued to trade favourably on the back of trade deal calming rhetoric which helped boost local risk sentiment.

The ringgit was also taking the cue from a stronger Chinese yuan, a key regional risk barometer, and firmer crude oil prices, he told Bernama.

Hong Leong Bank Bhd in a note said the ringgit had finished 0.06 per cent firmer against the US dollar on Thursday riding on positive risk sentiments in the markets.

"We maintain our view for the pair to continue hovering within 4.1300-4.1500 in muted trading as the year concludes," it noted.

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

The local unit fell against the Singapore dollar to 3.0498/0539 from 3.0489/0530 on Thursday and slipped against the euro to 4.5839/5911 from 4.5813/5874. It also depreciated vis-a-vis the Japanese yen to 3.7713/7769 from 3.7705/7752 and weakened versus the British pound to 5.3665/3734 from 5.3625/3693 yesterday. - Bernama

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