Ringgit closes higher against US dollar

KUALA LUMPUR: The ringgit closed marginally higher against the US dollar for the third consecutive trading day today, as the bearish outlook on the global economy prompted more investors to shift to emerging currencies, a dealer said.

At 6 pm, the local currency improved against the greenback to 4.4000/4040 from Thursday’s close of 4.4020/4045.

A dealer said that investors were cautious over the moves made by central banks across Europe to raise their interest rate on Thursday and signalled at even higher borrowing costs to come to tame soaring inflation that is eroding savings and squeezing corporate profits.

However, he said further gains were capped by slightly lower oil prices as demand concern emerged on global economic growth following numerous interest rate hikes around the world this week although new sanctions on Iran capped the downside.

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

The local note declined against the British pound to 5.4208/4257 from Thursday’s close of 5.3396/3427 and weakened versus the Singapore dollar to 3.1753/1786 from 3.1687/1710 yesterday.

It appreciated against the Japanese yen to 3.2655/2688 from 3.3128/3149 yesterday but went down vis-a-vis the euro to 4.6314/6357 from 4.5798/5824 previously. - Bernama